LANSING, Mich. — The state with the highest car insurance premiums in the country is on the verge of a political showdown over long-running efforts to cut rates by reining in generous medical benefits. Auto-friendly Michigan, which is among a dozen "no-fault" states where drivers must buy personal injury protection, is the only one to require unlimited coverage for crash victims. Motorists who are seriously injured need not worry about health expenses, but the insurance is expensive. Now, a Republican-led Legislature that is pushing to save people money by making the coverage optional has, for the first time, passed bills out of both chambers . Lawmakers must still resolve differences between the measures, including mandating rate cuts for personal injury protection, known as PIP. But if they do, GOP legislators could send an auto insurance overhaul to the desk of Democratic Gov. Gretchen Whitmer and dare her to veto it. She is warning that she will not sign the legislation … [Read more...] about Michigan on verge of showdown over high car insurance rates
Low rates on car insurance
Kristen Jordan Shamus Detroit Free Press Published 1:38 PM EDT Mar 26, 2019 You've heard of the gender wage gap, but how about a car insurance premium gender gap? It turns out, Michigan's is a doozy. Women in Michigan paid an average of $79 more per year than male drivers for the same car insurance coverage in 2018 — the second-biggest gender gap in auto insurance costs nationally. That is just one finding in a new report by The Zebra, an online auto insurance comparison pricing company that analyzed gender differences in rates in Michigan and around the country. Most states allow insurance companies to offer different premium rates to male and female drivers if they are able to show, for example, that male teen drivers are statistically more likely to get into crashes and file claims than female teens. "Insurance is all about risk," said Alyssa Connolly, director of market insights at The Zebra. She also is licensed in … [Read more...] about Michigan women paid $79 more in 2018 than men for same car insurance
Lisa Green, NerdWallet Published 12:36 pm CDT, Monday, March 18, 2019 This article was first published on NerdWallet.com. Michael Aminov-Tobin almost forgot a car insurance company was tracking his driving. He wasn’t paying extra attention to how fast he drove or how hard he hit his brakes. So he was astonished when the company offered to insure his 2016 Hyundai Veloster Turbo for $100 a month less than he’d been paying. “When it popped up with the price that it did, I was like, ‘Holy crap, that’s awesome!’” says Aminov-Tobin, 25, who operates a video production firm from his home near Columbus, Ohio. He benefited from a growing trend known as usage-based insurance, or UBI, in which auto insurance companies electronically monitor a customer’s driving and offer discounts in exchange. Such programs can be a great deal for careful drivers and low-mileage users, but they also present significant privacy concerns, experts say. … [Read more...] about Should You Give Up Privacy for Car Insurance Discounts?
Melissa Nann Burke The Detroit News Published 10:01 PM EDT Mar 17, 2019 Washington — New legislation introduced in Congress by freshman Rep. Rashida Tlaib would block insurers from factoring in a consumer's credit history when setting auto rates. Tlaib, a Democrat, says credit history or scores have nothing to do with how people drive, and results in discrimination against low-income consumers. "It's a new form of red-lining. If you have a low credit score, you're low-income, if you're financially burdened, does that make you less of a safe driver? No," Tlaib said. "It's just unfair. Most of my most of my neighbors and residents, they don't have access to credit, and they shouldn't be punished for being poor." Tlaib represents parts of Detroit, which has the highest auto insurance rates in the nation, but says the issue is one of fairness that resonates with her colleagues from around the country. She already has 25 co-sponsors … [Read more...] about Tlaib bill would prohibit use of credit scores to set car insurance rates
(Reuters) - The cost of a comprehensive motor insurance policy fell 6 percent in Britain in 2018, according to a survey, which indicated potential trade barriers brought on by the country's looming exit from the European Union would hurt prices in 2019. Prices in 2018 were pushed down by changes in the Ogden rate, used to calculate compensation for personal injuries, and the Civil Liability Bill, which includes reforms likely to reduce claims for whiplash injuries. Whiplash is a form of neck injury caused by a sudden jolt that snaps the head backwards but insurers argue that many claims in such cases are fraudulent. (https://reut.rs/2TQ4sBY) The average premium for a comprehensive policy is now £774, according to the latest index from price comparison site Confused.com, compiled by insurance advisory company Willis Towers Watson Plc <WLTW.O>. The index, based on enquiries submitted to insurer Admiral Group's <ADML.L> Confused.com, found that the final quarter of 2018 … [Read more...] about UK car insurance premiums fall six percent in 2018