Detroit Free Press Sounds the Alarm- Choice for Drivers to Solve Cities’ Insurance Crisis!

The number of uninsured drivers in Michigan continues to rise. In the mid-1990s, 1 out of 10 drivers had no insurance. As we enter 2011, 1 out of 5 drivers in Michigan do not have insurance.  In Detroit, 55 percent of drivers do not have insurance, and it’s not because they don’t want it.  Many can’t afford it, in large part because of the more expensive unlimited medical coverage required to be a part of everyone’s policy.

That’s a problem.  A big one.  And we’re not the only ones who think so.  The Detroit Free Press published an Op-Ed column today titled Confront Cities’ Insurance Crisis that takes state government to task and challenges Gov. Snyder and the legislature to come up with a solution to the insurance crisis that gives Michigan drivers the kind of choices and savings they need and deserve.

 "Gov. Rick Snyder and the new Legislature must put tackling Michigan's urban insurance crisis toward the top of their to-do list.

Unaffordable auto insurance is driving people out of Detroit and other Michigan cities, while practically forcing tens of thousands of other drivers to commit fraud to secure coverage at more reasonable rates -- or drive illegally without it. Statewide, nearly 20% of drivers are uninsured; and in cities like Detroit, where shelling out $4,000 a year for auto insurance isn't unusual, nearly half the drivers are without coverage.

Unfortunately, the insurance debate has resulted in nothing but legislative gridlock…

The time for grandstanding and pushing politically unattainable proposals is over. It's time to compromise and move forward with solutions that, while imperfect, will make insurance more affordable, especially in Michigan's cities. Government requires people to buy insurance. It should also help control costs."

We couldn’t agree more.  Right now, when an uninsured driver is injured in an auto accident, unlimited medical costs are still paid out from a state claims fund - costs passed on to drivers with insurance.  That leads to runaway costs.

Michigan drivers deserve to have options. With the Drivers for Savings Solution, drivers would be able to choose between paying for unlimited medical coverage if they want, or select more affordable coverage. This choice would mean more drivers could afford insurance and fewer people would be forced to break the law and drive with no insurance.

That’s what Michael Scott would call a “win-win.”

Voters for Savings

It's campaign time in Michigan and the laundry list of "To-Do" items is long for whoever is elected Michigan's next governor.

A report issued this week, however, suggests - correctly - that insurance reform must be high up on next year's priority list of needed reforms.

Michigan’s next governor has his work cut out for him. It is no secret that over the last decade Michigan’s economy has been in a veritable free-fall. Housing values slumped while businesses closed, residents fled and nearly a million jobs were lost. Unemployment in the state consistently ranks as one of the nation’s highest and on top of all of that Michigan was recently ranked as having the nation’s second highest auto insurance premiums.

A study released this week by the Competitive Enterprise Institute and the Mackinac Center for Public Policy outlines concrete and practical steps to begin reforming auto insurance regulation and perhaps put Michigan’s economy on the road to recovery.

Here's that study mentioned above by Lee Doren of the Competitive Enterprise Institute in a recent blog post.  His post and the more detailed report go one to say that "replac(ing) Michigan’s unlimited personal injury protection purchase requirement with more flexible options" should be tops on the next governor's list of agenda items when it comes to making auto insurance more affordable.

So, what say you Rick Snyder and Virg Bernero?  Insurance reform?  Cost savings?  More of the same?

Fraudsters and Scamsters, oh my!

It doesn't take long for eyes to glaze when detailed talk about no-fault insurance gets rolling.  It's not a surprise, really.  We all get insurance because we hope to never need it, so talking about it a lot is never a very attractive proposition.

I'm not gonna tell you this article is a great vacation-time read to take-in while drinking a Corona on a beach.  But it does shed important light on why insurance costs in Michigan are higher than most other states and why the Drivers for Savings solution is important.

Dennis Handley is an auto insurance fraud investigator in Michigan. For the most part, he is the insurance fraud investigator in Michigan—the other investigator is just part-time.

Handley investigates “questionable claims”—insurance claims that do not seem entirely valid—for the National Insurance Crime Bureau. The NICB is a not-for-profit organization funded by property/casualty insurance companies, which, in its words, “partners with insurers and law enforcement agencies to facilitate the identification, detection and prosecution of insurance criminals.” It’s a partnership that does not always come easily.

As you might expect from someone who spends his day investigating fraud in Michigan’s auto insurance system, Handley tends to think there is a lot of it to be found: fraud that’s driving up premium rates and should be stopped with major reforms to Michigan’s unique auto insurance system.

Read the rest.  Join the Drivers for Savings community. Then, enjoy a nice beverage.

Drivers for Saving... lives.

The focus of Drivers for Savings is to save people money.  So here's an idea: don't text while driving and avoid a costly ticket.

July 1 means Michigan's new ban on texting while driving goes into effect. 

As the Detroit Free Press reports:

Starting Thursday, texting will be outlawed, as Michigan joins 28 other states in banning texting while driving.

It's not going to stop the practice -- that will come with time, just as drunken driving has decreased and more motorists buckle up, said Anne Readett, spokeswoman for the Michigan Office of Highway Safety Planning. But, she said, "simply changing the law will change a lot of people's behavior."

Agree with the ban or not, local police can write you a ticket.  And, if you're looking to save money, you can put the phone down, avoid that ticket and avoid an accident.

Drive safely.

Detroit Free Press: Put DFS Solution on city's to do list

A good editorial from the weekend in the Detroit Free Press.  It outlines a few policy priorities that Detroit's Mayor Dave Bing should pursue in his efforts to get the city back on its feet and opportunity back in the sights of residents.  The Drivers for Savings solution made the To Do list:

On the surface, things don't look good: A third of the city is vacant, and much of its world-class architecture has been reduced to rubble. But Detroit is a lot more than abandoned buildings, empty lots, high crime, unaffordable insurance rates, failing public schools and food deserts where alcohol is more accessible than apples. It's resilient, resourceful people, filled with an unyielding pride and love for their city.

And.

Here's what else should make the mayor's to-do list:

• Work with the Legislature and the Insurance Institute of Michigan to craft a compromise insurance reform package this year. Detroiters will not get everything they want -- a ban on territorial ratings, for example -- but, facing the nation's highest auto insurance rates, they need relief now, not five more years of stalemate. Potential compromises include adopting a medical fee schedule similar to workers compensation and piloting a low-cost insurance program providing lower mandatory liability coverage.

Wow, she's fast!

Interesting study reported on today by the Wall Street Journal.

Percentage of teenage boys who say they are likely to drive 10 miles an hour above the speed limit: survey says?  36 perecent.

Percentage of teenage gilrs who say they are likely to drive 10 miles an hour above the speed limit: survey says?  48 perecent.

I guess you could follow up with a question about the percentage of boys v. girls being honest with survey takers, but here's what the Journal reported.

In a survey of teenage drivers, Allstate Insurance Co. found that 48% of girls said they are likely to drive 10 miles per hour over the speed limit. By comparison, 36% of the boys admitted to speeding. Of the girls, 16% characterized their own driving as aggressive, up from 9% in 2005. And just over half of the girls said they are likely to drive while talking on a phone or texting, compared to 38% of the boys.

The results were "a surprise to many people," says Meghann Dowd of the Allstate Foundation, an independent charitable organization funded by Allstate which sponsored the survey.

While teens fessed up about their own bad behavior, they also said their friends drive even worse. The study found that 65% of the respondents, male and female, said they are confident in their own driving skills, but 77% said they had felt unsafe when another teen was driving. Only 23% of teens agree that most teens are good drivers. This suggests teens recognize in their friends the dubious and dangerous behavior they won't admit to indulging in themselves.

The data were gleaned from online interviews with 1,063 teens across the country.

Drivers for Savings Solution Introduced in State House

Important news from the Michigan State House this week.  State Representative Pete Lund (R-Shelby Township) introduced the Drivers for Savings Solution in the form of House Bill 6094.

The bill would allow for choice in the limits of medical benefits coverage under the No-Fault act. Limits would include $50,000, $100,000, $200,000, $400,000 and the currently mandated unlimited level. The current unlimited benefit level would be the default plan for a driver who did not make a choice in coverage.

No word yet on when a hearing on the plan might be held, but this is good news for consumers looking for options and for savings.

Choices vs. Pandering

There was news out of Detroit yesterday that an effort is now underway to put an issue on the Michigan ballot in November regulating auto insurance.

As the Detroit News reported:

Insurance reform advocates plan to launch a petition drive today to reform car insurance rates for Metro Detroit motorists.

The Alliance for the United Metropolitan Detroit is seeking signatures to get car insurance reform on the Nov. 2 ballot.

"Insurance rates are out of control," said Tommie Summerville, the alliance's chairman. "Most people can't pay for their policies. If you buy a new car, your monthly insurance payment for it is either equal or more than the car note."

Earlier this year, we posted an op ed here at DFS, also printed in the Detroit News, detailing why the proposed ballot issue was less about savings and more about pandering.  It talks about how his proposal would not reduce but instead would only increase cost drivers through the loss of discounts and the potential for more frequent lawsuits. Ultimately, the initiative would increase insurance costs for all Michigan insurance consumers.

So here's the question (naive maybe):  Why pander when you have a plan available that truly empowers consumers to save?

Michigan drivers deserve to have options. With the Drivers for Savings Solution, drivers would be able to choose between paying for unlimited medical coverage if they want, or select more affordable coverage. This choice would mean more drivers could afford insurance and fewer people would be forced to break the law and drive with no insurance.

All that and no costly ballot issue required.

Texting and driving ban: good, bad, well-intentioned or overbearing?

According to this article, it looks like a texting while driving ban will soon be the law in Michigan.

The bill would make texting while driving a primary offense, meaning police can stop a motorist for suspected texting.

Such a law could present an enforcement challenge, but police back the proposal -- anything to get drivers focused on their driving.

The enforcement challenges will likely mean increased education efforts, the article says.  Efforts like this from AT&T:

What do you think?  Banning texting while driving: good, bad, well-intentioned or overbearing?

Mandates + Fraud + Abuse = Bad News for MI Drivers

A recent report from the Insurance Information Institute raises interesting, and troubling, news for Michigan drivers.

As state auto insurance mandates continue to prop up Michigan’s system of providing unlimited benefits, more and more people are using fraud and abuse to cash in.  Take a look.

Fraud and abuse are on the rise, and Michigan leads the nation.  And, to make matters worse, its honest drivers who are paying the price.

Just one more reason consumer choice should be brought to Michigan.