Many years ago, Wendy had a TV commercial. A wonderfully ironic grandmother named Clara Peller would exclaim at the top of her lungs “Where’s the steak?” When we look back at the Senate’s Bill 1 from 2019, we ask about something similar.
To steal a line from Governor Whitmer, where’s the fucking steak? When she signed the bill for reform without fail on a sunny Mackinac Island May afternoon, a smiling crowd of Democrats and Republicans congratulated themselves. No wrong change had been elusive for more than two generations. In this “reform,” they proclaimed, we Michigan drivers would get huge cost savings. They made us believe that our highest car insurance premiums in the country were a thing of the past.
Here is the reality. Zebra.com, considered the car insurance authority these days, tells us in its 2022 state car insurance rankings: Michigan saw the following average annual rates fall from $ 3096 in 2019 down to $ 2535 in 2020, a decrease of 18%. But prices rose four percent in 2021 from $ 2,535 to $ 2,639.
So we saw marginal savings at best.
By digging into the report, Michigan retains its dubious award of the highest prices anywhere. On an individual basis, Zebra Michiganders reports with the highest individual car insurance rates in the country and Detroit City with the country’s highest car insurance rates. Once again we ask “where is the steak?”
So, what happened?
Contents
- 1 So, what happened?
- 2 Does Michigan use credit score for car insurance?
- 3 What are 3 other common reasons that car insurance claims can be denied?
- 4 How much PIP coverage should I get Michigan?
- 5 Do I need PIP coverage in Michigan?
We checked in with Amanda Nothaft, Ph.D. She does much of the number crunching for Poverty Solutions at the University of Michigan. The legislature relied on Poverty Solutions data to try to make this flawless reform. See the article : What is a normal car insurance?. Dr. Nothaft told Local 4, “the legislation is a very good start on this”, but added “there is still more work to be done.” We will discuss that part in a moment.
Why we did not see prices fall in the promised way is a threefold problem. Dr. Nothaft says that three things must change in order for our prices to fall to the “there is beef” territory.
1. The bill did not eliminate lifelong, long-term medical benefits under what is called the P.I.P. or protection against personal injury. Instead, the vast majority of Michigan residents chose to keep it. This set a floor for how low prices could fall. Nothaft says of this development “a car accident of that magnitude is a very low probability, but people want to protect themselves and they are used to having this coverage.” “I think there are people who are just waiting to see how all this unfolds, how the reforms unfold before choosing lower coverage.” To get an overview of how much coverage we buy, New Jersey is the second closest state to P.I.P. and its ceiling is $ 250,000 in coverage.
Senate Bill 1 eliminated the use of non-driving factors such as zip codes and credit scores. Good idea. The reality, however, is that insurance companies have developed what are called “territories” and “insurance points.” These keep many buyers’ prices high. Nothaft believes “These territories may be, probably reflect the affected postcodes because the law does not dictate how the territories are defined. An insurance score is just a credit score with different weighting”.
3. Senate Bill 1 limits medical costs. This was done due to abuse in medical billing. The system was filled with inflated medical costs. The bill uses Medicare as a guide on how to pay benefits. This had serious unintended consequences. With less money coming into the system, many of the medical providers serving victims of serious accidents who needed long-term care found themselves scraping to make ends meet or even quit the business. With this, these patients, perhaps the best known former Detroit Red Wing defender Vladmir Konstantinov, lose the day-to-day care they have been dependent on for years. A lawsuit is pending that attacks this corner of the law. Nothaft believes this is the Senate’s bill 1’s biggest shortcoming: “the law must be rethought about the costs of long-term care and provide, give suppliers a kind of relief or right of appeal when they feel that what they are reimbursed for is in line with the care they provide.”
Now, to be sure, insurance companies are not always the bad guy here. No error insurance in itself is a hugely expensive system. People still steal cars and trucks at wholesale throughout Michigan, and certainly in Detroit. This drives up costs.
Many people still drive without insurance and increase costs. Medical providers are not always the bad guys here either. It is difficult to relax the Gordian knot created by an insurance law from the 1970s. It came with all the right intentions, but evolved into all the wrong results. The reform has left many of our most in need. These long-term care patients desperately need some help.
While House Speaker Jason Wentworth has said he does not expect any new or major legislation this year to address this issue, it does not prevent representatives on both sides of the aisle from working on solutions. Where this is heading in the days to come is someone’s guess. But we all want to see a better solution, given that petrol prices and inflation have long since eaten away all the meager 18% that the legislature and the governor so proudly promised three years ago.
Copyright 2022 by WDIV ClickOnDetroit – All rights reserved.
Does Michigan use credit score for car insurance?
An insurance company shall not use credit information or an insurance score as part of a decision to refuse, cancel or not renew a personal insurance policy under Chapters 21, 24 and 26. Read also : 7 Brutal Reasons Your Car Insurance Is More Expensive (Don’t Blame Inflation!). However, credit information and an insurance score may be used to determine payment options and availability of premium deduction.
What is an Insurance Point in Michigan? Important takeaways. An insurance score is a credit rating used by insurance companies to assess a potential insured consumer’s risk level. The insurance score is one of the most important determining factors for how much monthly insurance premium the consumer will be assessed.
Does auto insurance go by your credit score?
How Does Credit Affect Car Insurance Prices? Nationwide uses a credit-based insurance score when determining the premium. Studies show that using this score helps us better predict insurance losses. On the same subject : Navy Insurance is fully connected to Texas Unconventional Car Insurance. In fact, 92% of all insurance companies now consider credit when calculating car insurance premiums.
How does insurance affect your credit score?
Credit Based Insurance Points Things like the total amount of all accounts on your credit report, the average age of these accounts and more are taken into consideration. But just like a regular credit report, when insurance companies ask for your credit-based insurance score, it will not affect your credit score.
Does car insurance improve your credit?
Unlike loan payments, paying car insurance premiums can not improve your credit score. And buying car insurance will not affect your credit either – car insurance companies will do what is called a “soft request” to check your credit when you shop for coverage.
What are 3 other common reasons that car insurance claims can be denied?
Here are some common reasons why insurance companies reject claims:
- The driver who caused the collision has not paid his monthly premiums. …
- You do not understand your policy. …
- You committed fraud or provided false information during the application process. …
- You did not report the incident in time. …
- You are an excluded driver.
What can lead to an insurance claim being rejected? Insurance claims are often rejected if there is a dispute about guilt or liability. Companies will only agree to pay you if there is clear evidence that their policyholder is to blame for your damages. If there are any indications that their policyholder is not liable, the insurance company will reject your claim.
What is one of the most common reasons for a claim being rejected by an insurance company?
Minor data errors are the most common reason for claims rejection. Sometimes a vendor may code the submission incorrectly, omit information, misspell your name or have the wrong date of birth. Your explanation of benefits (EOB) will give you clues, so check there first.
What are the most common claims rejections?
The most common refusals Payer ID is missing or invalid. NPI from billing provider is missing or invalid. The diagnostic code is invalid or does not apply on the service date.
Which of the following is a common reason why insurance claims are rejected?
# 1: You waited too long. One of the most common reasons for a claim being rejected is because it is submitted late. This may seem surprising to some doctors because there is a large amount of time available for claims to be submitted. In fact, in most cases, doctors have around 60-90 days to file an insurance claim.
How much PIP coverage should I get Michigan?
In Michigan, the minimum liability insurance is: $ 50,000 for personal injury liability per person. $ 100,000 for personal injury per accident. $ 10,000 in property damage per accident (in another state)
What is the recommended coverage for bodily injury in Michigan? Michigan auto insurance policies are required to provide personal injury liability insurance of not less than $ 250,000 per person and up to $ 500,000 per accident (“$ 250,000 / $ 500,000”) for these claims unless you choose higher or lower limits depending on the amount of protection you need.
Do I need unlimited PIP in Michigan?
Under the new law, no one needs to buy unlimited PIP medicine on their car policy, even though Michigan is still the only state where there is still an alternative. People who buy lower PIP medical coverage levels or who opt out altogether will rely on their health insurance coverage to pay for any car accident damage.
What is unlimited PIP coverage in Michigan?
At that time, all auto insurance in Michigan included unlimited PIP benefits, which covered allowable expense benefits (medical expenses), replacement services (for household services the injured person can no longer perform), loss of employment benefits (up to 85% of the injured person’s gross salary for up to 3 years ), and …
Is PIP optional in Michigan?
PIP is required in Michigan. Also referred to as “personal protection insurance” or “personal injury protection”, PIP is one of the mandatory car insurance coverages under the No-Fault Act. Everyone who drives regularly in Michigan must have it.
How much does unlimited PIP cost in Michigan?
To help insurance companies handle claims that are paid in an “unlimited” way, the state of Michigan agreed to take over PIP claim costs when a given claim exceeds $ 500,000. We pay $ 220 / year to this fund for each vehicle we legally insure and driving.
What is recommended for car insurance coverage in Michigan?
Minimum Insurance Requirements for Michigan The minimum amount for auto insurance in Michigan is $ 50,000 / $ 100,000 / $ 10,000. In the event of a covered accident, your personal injury limit is $ 50,000 per person, with a total maximum of $ 100,000 per incident.
What is a good amount of coverage?
Financial experts often recommend buying 10 to 15 times your annual income in coverage, although your social security number may be higher or lower.
What auto coverage should I have in Michigan?
In Michigan, car insurance laws require that drivers have a mandatory 20/40/10 insurance without error. This means that drivers should have liability coverage of at least $ 20,000 per person and $ 40,000 per accident for bodily injury, with at least $ 10,000 in property damage coverage.
What should I make sure my car insurance covers?
You should have the highest amount of liability coverage you can afford, with 100/300/100 being the best level of coverage for most drivers. You may need extra coverage to protect your vehicle, including comprehensive coverage, collision and gap coverage.
Do I need PIP coverage in Michigan?
PIP is required in Michigan. Also referred to as “personal protection insurance” or “personal injury protection”, PIP is one of the mandatory car insurance coverages under the No-Fault Act. Everyone who drives regularly in Michigan must have it.
Can you opt out of PIP coverage in Michigan? There are two conditions that must be met for a person to opt out of PIP medical coverage. The named insured must have BOTH Parts A and B of Medicare, and â € ¢ All other household members must have qualified health coverage or must be covered under another car insurance with PIP medical coverage.
Do I need PIP in Michigan if I have Medicare?
Yes. The new car insurance law allows named insured covered by Medicare to opt out of PIP medical coverage as long as all other household members have other qualifying coverage. Since both household members are covered under Medicare, this requirement is met.
Does Medicaid cover auto accident injuries in Michigan?
Does Medicaid Cover Car Accident Injuries in Michigan? Medicaid, which provides health coverage to low-income families and individuals and many who suffer from disabilities, is not commonly used to pay for car accidents in Michigan, but there are rare cases where Medicaid provides coverage.
Can I opt out of PIP in Michigan if I have Medicaid?
Seniors can now opt out of PIP expense benefits without error if they: are covered by both Part A and B of Medicare; and. their spouse and any resident relatives have Medicare “qualified health coverage” or have coverage under a separate no-fault policy.
Does Medicare cover auto accidents in Michigan?
Does Medicare Cover Car Accident Injuries in Michigan? Yes, under certain circumstances, Medicare will cover car accident-related injuries in Michigan. But unlike No-Fault car insurance, it will want to be reimbursed and it will not cover all the important medical care services that a car accident victim needs.
Is PIP coverage required in Michigan?
PIP is mandatory in Michigan. PIP can pay for medical expenses for the driver of the insured vehicle and passengers in that car. PIP can also pay part of your lost salary and necessary necessary services around the household. PIP can be used regardless of who is to blame for an accident.
Does Michigan require unlimited PIP insurance?
Under the new law, no one needs to buy unlimited PIP medicine on their car policy, even though Michigan is still the only state where there is still an alternative. People who buy lower PIP medical coverage levels or who opt out altogether will rely on their health insurance coverage to pay for any car accident damage.
How much PIP coverage do I need in Michigan?
Drivers in Michigan are typically required to have at least $ 250,000 in PIP coverage for medical expenses, although there are some exceptions for drivers with Medicare or Medicaid.
Do I need unlimited PIP in Michigan?
Under the new law, no one needs to buy unlimited PIP medicine on their car policy, even though Michigan is still the only state where there is still an alternative. People who buy lower PIP medical coverage levels or who opt out altogether will rely on their health insurance coverage to pay for any car accident damage.
How much does unlimited PIP cost in Michigan?
To help insurance companies handle claims that are paid in an “unlimited” way, the state of Michigan agreed to take over PIP claim costs when a given claim exceeds $ 500,000. We pay $ 220 / year to this fund for each vehicle we legally insure and driving.
Is PIP optional in Michigan?
PIP is required in Michigan. Also referred to as “personal protection insurance” or “personal injury protection”, PIP is one of the mandatory car insurance coverages under the No-Fault Act. Everyone who drives regularly in Michigan must have it.
What is unlimited PIP coverage in Michigan?
At that time, all auto insurance in Michigan included unlimited PIP benefits, which covered allowable expense benefits (medical expenses), replacement services (for household services the injured person can no longer perform), loss of employment benefits (up to 85% of the injured person’s gross salary for up to 3 years ), and …