THURSDAY, DECEMBER 9, 2021
One of the moments we have been waiting for in Michigan is getting money back into our pockets from paying so much premium in car insurance, especially in the last decade. Mandatory fees, associated with an auto insurance policy in Michigan, include those from the Michigan Catastrophic Claims Association (MCCA). The fee started at $3 per vehicle in 1978, but the MCCA has required us to pay quite a bit in fees per vehicle over the past decade with increasing costs over time. The assessments per vehicle over the years are as follows:
2011 = $145
2012 = $175
2013 = $186
2014 = $186
2015 = $150
2016 = $160
2017 = $170
2018 = $192
2019 = $220
2020 = $100 (Michigan Auto Insurance Reform began)
2021 = $86
On December 6, 2021 Director Anita Fox with the Department of Insurance and Financial Services released a notice stating the MCCA will be returning approximately $3 billion of excess surplus funds to its member insurance companies (MCCA letter to Director Fox). Insurance companies will then refund policyholders that had a policy in effect on 10/31/21 at 11:59 p.m. EST. The amount refunded to these policy holders will be $400 for every car that was subject to the MCCA fee at this time. The amount for historical vehicles is 20% or $80 of the refund per car. The MCCA is anticipating to distribute this surplus to its member insurance companies, at the earliest March 9, 2022. Insurance companies will have no longer than 60 days after receiving the funds to issue out the refund checks to individual qualifying policy holders. Each insurance company will have more information available as they identify a specific timeframe and the steps to issue these refund checks.
Last year during the COVID-19 pandemic, the Governor and Director Fox worked together to give partial refunds to Michiganders for “staying safe and staying home”. We are grateful to see that the auto insurance reform is working and it is starting to provide lower rates and even refund premiums. It may take time because we know these processes do not happen overnight. Unfortunately, we can never get back the time and money that was spent, but we will be happy to recover whatever we can and we are hopeful for the future of Michigan’s car insurance rates.
FRIDAY, OCTOBER 15, 2021
Why an Independent Agent?
Not all insurance agents are the same! Choosing the right one can make a big difference – in price, service, and value.
With other agencies, you get one company that sells one brand of insurance. With an independent insurance agency like Macomb Insurance Mart you get choices.
Why? Because independent insurance agencies, like Macomb Insurance Mart, represent a number of different insurance companies, and can compare coverage and prices to find the best possible value for your individual circumstances. As independent agents, we are members of the Clinton Township, MI community, and we’re committed to doing business professionally and being your advocate in times of need.
Serving Macomb and Oakland Counties and the state of Michigan, here are a few reasons why Macomb Insurance Mart should be your first and last stop when looking for insurance.
- We work for you when you have a claim.
- We are not beholden to any one company. This means you don’t have to change agencies as your insurance and service needs change.
- We are your consultants, working with you as you determine your needs.
- We are value-hunters who look after your pocketbook in finding the best combination of price, coverage, and service.
- We offer one-stop shopping for a full range of products, including home, renters, auto, business, RV, watercraft, motorcycle/ATV, landlord and condo insurance.
- We can periodically review your coverage to keep up with your changing insurance needs.
- We are committed to customer satisfaction – it’s the key to our livelihood.
- We treat you like a person, not a number.
- We are licensed professionals with strong customer and community ties.
There is a difference. To find out how our independent insurance agency can help you find the right insurance coverage, please contact Macomb Insurance Mart today. Give us a call today at 586-263-0700 or email us at firstname.lastname@example.org.
MONDAY, JUNE 24, 2019
Our agency, like many others have started to receive calls from our clients and even new prospects asking many questions about the new reform bill that was passed at the beginning of June 2019. This law, which started in October 1973, affects everyone in the state of Michigan. The reform bill will start going into effect July 1, 2020 with some provisions not changing until 2021 & 2022. Like many other bills it can take years to figure out the details in a change of this magnitude.
The changes we are currently aware of include mini tort, non-driving factors, Michigan Catastrophic Claims Authority (MCCA) and state required limits. Other changes involve medical coverage/charges in an auto accident, but most importantly to the consumer is the premium decrease of an auto insurance policy.
If you have liability coverage ONLY on your vehicle you may currently go after the "at-fault" party of an accident for $1,000. This mini tort amount will increase to $3,000.
Non-driving factors including things such as marital status, owning a home, education level/occupation and postal code can no longer be used as rating methods. Membership associations will still be able to offer group discounts on insurance policies and territory codes will still be used by insurance carriers. Credit scores cannot be used for rating but credit report information can be used to calculate an insurance score. Also, Insurance companies will no longer be able to limit or refuse coverage based on a consumer not having "prior insurance" and they will no longer surcharge for this.
The MCCA is going to have to provide more detail as to how the annual fee is calculated for each vehicle. Currently, it is listed at $192 fee per vehicle. On July 1, 2019 (in 6 days) this amount is going to increase to $220 per vehicle, not policy, PER VEHICLE. We hope that next year’s assessment will be more reasonable with the new reform policy that is put in place.
Michigan, like many other states, has state required minimum limits for liability coverage. It is currently listed at $20,000 per person with $40,000 per occurrence. This will increase to $50,000 per person with $100,000 per occurrence. This increase is assumed because the new law allows people to sue at-fault parties for additional coverage needs.
Auto insurance in Michigan has had unlimited payout in medical coverage for almost 50 years. This means that there has been no limit to what or how much can be charged by individual entities as the result of an auto accident injury. Consumers purchasing auto insurance can now decide if they want to keep their "unlimited" coverage (most insurance agents should recommend this) or if they want a specific limit to be applied for medical coverage. Limits that can be chosen are $500,000, $250,000, $50,000 and opt-out. You can only choose $50,000 if you are a recipient of Medicaid and you can only opt-out if you are a senior or permanently disabled on Medicare. It is important to keep in mind that the consumer is responsible to check with their health carrier on ALL coverage because some expenses may have a limit and other expenses may not be covered at all. These can include physical therapy, medical equipment and services provided in or out of network. Medical providers will only be able to charge a maximum 200% of the Medicare base. This decreases to 190% by year three.
How much do you save on insurance? This law reduces ONLY the Personal Injury Protection (PIP), medical expense & work loss wages, on each policy. This is not a total policy reduction. I have listed the percentage that your PIP coverage can be reduced:
Opt-Out = 100% reduction
$50,000 = 45% reduction
$250,000 = 20% reduction
$500,000 = 10% reduction
Our recommendation is to make sure you carry enough coverage to help you in the event that you were catastrophically injured. Assume you have to pay for all procedures (including surgery if necessary), prescriptions and medical equipment not only for your vehicle but also your home. These medical expenses could last the rest of your lifetime so make sure you are prepared.
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Tags: michigan, no fault, auto, car, insurance, reform, law, new, rates, change, update