Might just be a connection here

Michigan drivers pay 136% above, or more than double, the national average of $815 a year, according to a report by insuranceQuotes.com.

And Wayne County is the most expensive county within the most expensive state. Car insurance costs $2,789, or 45% more in Wayne County than the statewide average of $1,923, according to a report by insuranceQuotes.com.

OK.

The legislation would create a new version of the Michigan Catastrophic Claims Association but keep Michigan’s unique system of unlimited benefits for those who suffer serious crash injuries costing more than $545,000.

Well, if that’s the system they want then why not?

Another source of high premiums: Michigan has an unusually high number of uninsured drivers, which drives up rates for people who do have car insurance, she said.

Sure I’ve heard of something called demand curves or summat that might explain that.

12 comments on “Might just be a connection here

  1. Forbes won’t talk to me, but you seem to be confused about the differences between Assured Tenancies, Assured Shorthold Tenancies, Statutory Periodic Tenancies and when Sitting Tenants are created.

  2. Are these unlimited benefits paid to anyone with catastrophic injuries or only to the policy holder, ie would it cover a pedestrian or an uninsured driver?

    If so, moral hazard?

  3. Hmmm. Sure?

    These days you can only create sitting tenants explicitly by granting an Assured Tenancy.

    You don’t need a new tenancy every 6 months to avoid a sitting tenant – that 6 month or 12 month thing is usually about mortgage conditions (so they can get them out if you go under) or Letting Agents screwing Ls and Ts for repeat fees.

    A standard AST will roll over onto an SPT with no sitting rights – 2 month notice by L, or 1 by T, plus the part period to terminate. I have 10 year Ts with that setup.

    M

  4. What the article doesn’t point out is that Wayne County is in fact The Detroit Metro Area. I doubt if you live in Flint or Lansing and certainly not Dearborn or Ann Arbor, that your premiums are much different to elsewhere.

  5. “The legislation would ….keep Michigan’s unique system of unlimited benefits for those who suffer serious crash injuries costing more than $545,000.”

    Is that so odd? In most countries (incl UK), if you mow someone down/crash in to someone/have a crash that injured your passenger, you (in practice your insurers) are liable for whatever the court awards. That would include periodical payments for the rest of the victim’s life, if awarded (as it increasingly is in serious cases). Isn’t that the point of insurance?

    AIUI, insurance regulators in the States regulate not just the solvency of motor insurers, but also the premiums they charge, so I agree this is not an advert for regulation.

  6. Luke>

    I rather tend to agree that it’s the point of insurance, but in the US it’s common to only be covered up to a fairly low limit.

  7. Dave, thanks. Easy free market solution surely – bankrupt anyone who has inadequate insurance for the carnage they have caused. US is a bit namby pamby about bankruptcy, though, which probably explains why people don’t buy adequate insurance.

  8. Another source of high premiums: Michigan has an unusually high number of uninsured drivers, which drives up rates for people who do have car insurance, she said.

    Oh FFS. This is the point that people really need to wake up and smell the frickin’ coffee. What word is missing from this article? Why do the counties around Detroit have such high insurance rates? What are these magical drivers who drive without insurance?

    This is not rocket science people. It is a simple transfer of money from law abiding Middle Class people, you know, the sort that live in Detroit’s suburbs, to people who are not law abiding or middle class in Detroit itself.

    Immigration is just the gift that keeps on giving. Detroit was a great place to live. Before it started to attract mass migration from within the US. Britain’s future.

  9. Luke – “Easy free market solution surely – bankrupt anyone who has inadequate insurance for the carnage they have caused. US is a bit namby pamby about bankruptcy, though, which probably explains why people don’t buy adequate insurance.”

    The US is very generous towards bankruptcy. Famous for it.

    But can you think of a reason why the suburbs around Detroit have a problem with drivers who don’t have insurance and are unlikely to be bothered by the threat of bankruptcy one little bit? Go on. I am sure you can.

    The world is not made up of nice middle class White people.

  10. Immigration is just the gift that keeps on giving. Detroit was a great place to live. Before it started to attract mass migration from within the US. Britain’s future.

    Argument by irrelevant analogy always impresses me. I deduce that to save our cities we need to encourage mass immigration and ban internal migration.

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