Well we have heard it before and now we are hearing it again, Michigan legislators are talking about talking about attempting to put policies in place to lower our auto insurance.

By the way we have the third highest auto insurance rates in the nation.

The Detroit News is reporting that Michigan legislators are talking about “all options” are on the table as the talk about reforming Michigan’s no-fault auto insurance system.

I have been hearing about them talking about the high cost of our auto insurance for a long time and nothing ever results from it, but hope springs eternal right.

Michigan’s Speaker of the House Tom Leonard, R- DeWitt, told the Detroit News:

At the end of the day, we have to have rate relief for the citizens of this state, and that means we’ve got to leave all options on the table.

According to the National Association of Insurance Commissioners’ latest report released in January, Michigan’s statewide premiums averaged $1,351 in 2014, which was the third highest rate in the country.  Even worse Insure.com recently pegged Michigan’s full-coverage average premiums as the nation’s highest.

The question is why is Michigan’s auto insurance so high when compared to the rest of the country.  Yes we do have to fund the Michigan Catastrophic Claims Association (MCCA) but that in itself is not the only reason why our rates are so high.

Chris Mitchell from the Michigan Health and Hospital Association is quoted in the article stating:

If you’re involved in an accident, everything you would need for yourself or your family is covered. Nowhere else in the country is there a product that does that.

Part of the problem of the MCCA is the cost of the procedures they pay for is much higher than those charged to other insurance policies such as disability claims.

Lori Conarton from the Insurance Institute of Michigan is quoted in the article stating:

We have unlimited lifetime medical benefits, and no other state has that. When people want to know why they pay more here, that’s the reason.

We first have to determine all the reasons why the rates are so much higher in Michigan before we tackle the issue of bringing those auto insurance rates down.

We will see if this is the year that talk actually turns to action.

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