With MCCA, I pay more to the state for my motorcycle than I do to the insurance company for actual coverage, even though they collect it for the state. And this is on every vehicle, even if I’m the sole driver and have more than one, like I’m driving them all at the same time.
If anything, it should be per driver, not per vehicle.
It would benefit the public for the government to work to end “routine” and “maintenance” insurance coverage for many different kinds of expenses, such as minor repairs and even routine health care coverage.
While the benefits of offering these seem to appeal to people, the truth is that they cost society more money than it can afford to pay. The worst case being in health care.
A normal, older person may see doctors 20 times a year for every petty reason imaginable. It is a boon to hypochondriacs. If they had to pay for minor care themselves, even those of means would see a doctor perhaps three times a year.
What they don’t see is that 90% of the costs of seeing doctors 20 times a year are paid for by the taxpayers and insurance premiums for everyone else.
Most older people are fine with that. “Hey we put money into the system”, leaving unstated that for every dollar they put in they are getting 50 dollars in benefits.
Importantly, doctors who refuse insurance, Medicare and Medicaid have such vastly lower expenses they can and do offer the same procedures for 50% less! Cash up front only.
And the money saved can be used for the real insurance needs that truly matter: catastrophic insurance. When you absolutely have to have insurance because the costs up front are enormous.
That was the real purpose of insurance at the beginning, and what it should be today.
In 2009, I sent this ltter to my Senator and Congressman. (This was before I was “blown away” and forced to move out of state.
April 2, 2009
Dear Senator Sanborn,
This morning, while listening to US Rep. Candice Miller on WJR, she was discussing the “cash for clunkers” proposal going through the US Congress. While I think the idea has some merit, let me explain why I will not be able to participate.
I am the sole breadwinner for my family of six and I make a healthy income. However, I drive older used cars and always have. We own three cars. Mine is a 2001 Mercury, My wife has a 1999 Chevrolet van and my daughter has a 1999 Mercury Sable. (note the pattern of American cars?)
Currently, Michigan has a very onerous policy of charging extreme rates for insurance. When my daughter bought her well used car, our rates immediately doubled to over $2400 per year. That is for PLPD on each car. No collision or comprehensive coverage. Through some good shopping and assistance by our insurance agent, we were able to find another insurance company based in northwestern Michigan that lowered the rate to about $1400 per year.
For the record, in a collective 63 years of driving, members of my family have received one moving violation and zero accidents.
I will not buy new cars because I can either afford a car payment or an insurance payment. The main cost of this coverage is the hundreds of dollars we are forced to pay for unlimited catastrophic care and uninsured motorist coverage.
Here is a solution I would like for you to spearhead. If it were me, I would call it something like the “I can’t afford to care about your personal problems automotive insurance reform bill.”
“I don’t care that you cannot afford insurance. Hitch a ride, take a bus, get a bike or walk.” If someone gets caught driving a vehicle without insurance, or gets into an accident, they go to jail. Pure and simple. The first 10-15 people who get 3-5 year sentences will completely fix the problem of uninsured cars
“I’m sorry that you got hurt in a wreck.” The State of Michigan will help you up to $250.000.” Beyond that, the responsibility of the State is complete. Stuff happens and it’s not always good, but we cannot afford to expend unlimited treasure.
This would immediately save every vehicle owner in the state about $400.00 per year. The threat of imprisonment would rid the roads of many bad drivers and pollution belching cars barely fit for a scrapyard.
Is this cold? Yes..
Is it heartless? Yes.
Is it the right thing to do for Michigan citizens who are working within the system? Absolutely.
Will it immediately help our economy and our automotive companies? Without question.
We simply cannot afford to care about lawbreakers in this State anymore.
I urge you to sponsor such legislation.