Auto insurance reforms in Michigan
People who have their own cars in the state of Michigan have been facing a lot of financial problems due to the few options placed before them in terms of auto insurance policies and the situation shows no scope for improvement any time in the near future. The Michigan state Representative Barb Byrum and the President of the Brain injury association of Michigan as well as the spokesperson for the coalition protecting auto no-fault, Michael Dabbs have reaffirmed this statement.
People living in the state of Michigan pays the highest amounts in terms of auto insurance premium compared to people living in the other states of the United States of America. The rates of auto insurance have increased by seventy percent from 1989 to 2005. Wages and salaries of people have decreased during this point in time and these heavy rates of auto insurance have only proved to a heavy financial burden for people living in the state of Michigan.
But the auto insurance companies blame the driving skills of the people living in the state of Michigan for the increase in the rates of auto insurance. Michigan based drivers are considered to be one of the safest drivers in the United States of America. The amount of seat belt usage in the state of Michigan is much higher than most of the states in the United States of America. The amount of deaths which take place due to vehicle accidents is also extremely low. The amount of cars which are stolen in Michigan is also negligible.
According to Dabbs and Byrum, the rates of auto insurance have been increasing steadily and this is mainly because the insurance companies make use of some kind of secret formula based on the details which are being submitted by every prospective client in order to increase the rates of auto insurance premium. The amount which needs to be paid in terms of an auto insurance premium will be decided depending on the educational as well as professional qualification of the client as well as his financial credibility.
Since the auto insurance companies are not answerable to any person with regard to the standards which are being followed in order to fix the auto insurance premium amounts, people who have only managed to complete their high school education will have to pay the same amount of insurance premium as that of a college graduate. Dabbs and Byrum have stated that the amount which a person needs to pay in the form of his auto insurance premium should be based on his driving skills and qualification and not on his level of income.
According to the Michigan Insurance consumer advocate, every insurance company should get the required permission before hiking its auto insurance premium rates. This will ensure that the insurance premium does not increase to an unwanted extent and it will also provide relief to people who have a good driving track record. All insurance companies which charge high rates of insurance premium depending on other irrelevant factors will be penalized.