Michigan lawmakers: Get rid of mandatory auto insurance

[Swordsmyth]

Michigan lawmakers have been trying unsuccessfully for years to overhaul or get rid of the state's costly no-fault auto insurance system.Now, a bipartisan group of lawmakers thinks it has the answer: Get rid of the requirement for mandatory auto insurance coverage altogether.
The "Macomb Solution" proposal, named because the bills are sponsored primarily by representatives from Macomb County, would allow drivers to get insurance, or not. Drivers could continue to buy unlimited or limited coverage or none at all.
Only two states in the nation — Virginia and New Hampshire — have no or limited auto insurance requirements for their drivers, according to the Insurance Information Institute.

“This package of bills is no different than going through a cafeteria line. You are only paying for the items you select. Car insurance should work the same way," said Rep. Peter Lucido, R-Shelby Township. "Those who do not have the money or wish to assume risk of loss from injury, property damage and lawsuits can choose to not buy auto insurance at all."

More at: https://www.freep.com/story/news/local/michigan/2018/02/23/michigan-auto-insurance/364933002/

[Anti Federalist]

And we in NH have some of the lowest insurance costs in the country.

https://www.insure.com/car-insurance/car-insurance-rates.html

[pcosmar]

I licensed my first car on my signature.. A "Financial Responsibility"form.

I also remember the "Sales Pitch" of lower insurance rates when everybody had insurance.. They made it mandatory and my insurance bill doubled.

And then came "No Fault".. perhaps not the stupidest idea in the history of bad ideas, but it rates.

[Zippyjuan]

Michigan is one of the highest cost insurance states (currently #2). New Hampshire is #39.

https://www.insure.com/car-insurance/car-insurance-rates.html


Most expensive states for car insurance
#1 Michigan

Michigan has dominated the top spot for expensive states by capturing the No. 1 spot five of the eight years Insure.com has conducted the study. Beyond the last four years, Michigan was also pronounced the most expensive in 2011 and placed second in 2010 and 2013. The lowest it has come in was third in 2012. This year Michigan’s average annual premium is $2,394 -- 82 percent higher than the national average of $1,318.

Michigan’s unique no-fault car insurance system is the culprit for the high annual car insurance rates. Not unlike other no-fault states, Michigan requires car owners to buy personal injury protection (PIP) coverage that pays for the medical expenses of the policyholder and household residents if they are injured in an auto accident. This coverage also extends to passengers who don’t have their own PIP insurance.

Where Michigan’s coverage becomes unusual are the limits.

Other no-fault states place a limit on the PIP amount; Michigan’s PIP policy instead guarantees unlimited lifetime medical benefits to those injured in an auto accident. Car insurance companies pay up to $555,000, and then the nonprofit Michigan Catastrophic Claim Association (MCCA) picks up medical expenses exceeding that limit. Michigan drivers help fund the MCCA by paying an annual assessment fee. Currently it is at $170 per vehicle.

Insurance fraud also helps push the auto insurance premiums higher. The Michigan Insurance Fraud Awareness Coalition estimates that around 10 percent of all no-fault claims are fraudulent, costing insurance companies about $150 million. It concludes that this crime costs Michigan motorists $200 to $300 each year in higher car insurance costs.

The high cost of auto insurance in Michigan results in many drivers unable to afford a policy but who continue to drive. Michigan is estimated to have 21 percent of drivers on the road operating without car insurance. A large number of uninsured motorists prods car insurance rates higher because there are fewer insured drivers paying premiums to help offset the risks taken on by the car insurance companies.

[oyarde]

Insurance is for the not wealthy . In my home state there is a required minimum of 25/50/25 Liability . 25K for death or bodily injured of one person , 50K for same of two or more persons and 25K for property . I would estimate the cost of that at 30 dollars a month.