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So what's the downside to a tort insurance system?

Discussion in 'Sound Off (MichiganForums.com)' started by DirtySteve, Feb 12, 2018 at 7:33 PM.

  1. DirtySteve

    DirtySteve

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  2. junkman

    junkman

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    I don't think the insurance companies will allow it to happen.They make way too much money the way things are.
     
    xhoosiericeman likes this.

  3. jiggin is livin

    jiggin is livin

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    Insurance in Michigan is F'n ridiculous. When weighing your options of moving for a new job, auto insurance costs SHOULD NOT be a factor.

    Sent from my E6810 using Michigan Sportsman mobile app
     
  4. Quack Addict

    Quack Addict

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    Hospitals make $$$ off the current system and lobby against changes as well.

    If you've never been to the ER, one of the first questions they ask you is if your injury was due to an auto accident. If it was, "special" pricing applies.

    Sent from my XT1585 using Michigan Sportsman mobile app
     
  5. junkman

    junkman

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    That is why the whole system needs to be changed.The people of Michigan pay the highest insurance rates in the country.
     
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  6. Quack Addict

    Quack Addict

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    I totally agree. People have been trying for years - unsuccessfully. This is about the most steam I've ever seen to revamp car insurance in MI.

    A big part of the problem is the MCCA fund. I don't think there's ever been an accounting of how much $$$ is in it, how the funds are maintained, who controls it, how many people draw from it, etc. "Just pay us $150/vehicle/year and trust us"...

    The MCCA fund is somebody's cash cow. And that somebody can buy a lot of votes with a slush fund like that at their fingertips.

    Sent from my XT1585 using Michigan Sportsman mobile app
     
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  7. junkman

    junkman

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    I remember back in the 90's getting a refund from the uninsured drivers fund that we pay into.I really hope to be able to get insurance rates like some of the other states enjoy.
     
  8. brigeton

    brigeton

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    My wife works for a insurance company and they do want the change. She says the rates are so high because of the unlimited liability for personal injury and other states have a cap on it.
     
  9. augustus0603

    augustus0603

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    You're wife is right. PI lawyers can get a chunk of any settlement and weekly payments for caretakers. Hospitals charge 4x the amount for services to auto insurers than they do with health insurance carriers and Medicare/Medicaid. These HUGE lobby groups just pump more money to the representatives and our wonderful governor every time this legislation is brought up. There is a right way to have our rich insurance benefits and pay lower prices. But in order for that to happen, lawyer fees must be capped and proper fee schedules for the hospitals must be set. As long as we have our current, corrupt government in place, that will never happen. The insurance carriers want to do away with unlimited benefits as well. One or two max PIP losses a year and they're in the red.

    It's funny how our lawmakers and government officials keep that quiet. Hmmm. I wonder why?
     
    Last edited: Feb 13, 2018 at 7:55 AM
  10. pescadero

    pescadero

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    1) While there is unlimited liability for personal injury - it isn't insurance companies that pay that unlimited amount (so it shouldn't raise costs). The MCCA pays past a certain point - the insurance company payout IS capped.

    2) Doing away with the MCCA just means you'll pay for the same folks either through taxes or medical bills.

    3) Michigan's extremely high number of uninsured motorists probably has a lot more to do with our high insurance rates than does the uncapped liability payouts.

    4) The MCCA SHOULD be a public agency with all their finances public.
     
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  11. augustus0603

    augustus0603

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    The capped amount ($500k) the carrier pays is much higher than capped amounts insured's carry in other states. If you paid that much coverage in another state, your premium would be higher than their norm.

    Agree 100% on the MCCA. Do away with the fees until the fund is exhausted. It's currently in the billions. Double the cap to insurance carriers. Fix fee schedules with hospitals so it's on par with other programs. Cap attorney fees on settlements. If they did these things, a family with 4 vehicles would save $600 a year and there would be no loss of coverage.
     
  12. pescadero

    pescadero

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    Doing away with the MCCA basically guarantees a loss in coverage - going from unlimited catastrophic injury protection to a capped amount of injury protection IS a loss in coverage.

    ...and it is one that will be paid for by some combination of taxpayers, and/or other folks using medical services.

    Now - the MCCA absolutely should be transparent so we know how much money is coming in and out, and how the money is being spent.
     
  13. augustus0603

    augustus0603

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    I'm willing to bet that fund should have billions in it. I realize that stopping the fee would exhaust it, eventually. But if the insurers are capped at $1M, it cuts the amount paid out in half.

    It's a no win situation. I'm a p&c agent and what some people have to pay is ridiculous. I have some accounts, not well off, that pay in excess of $20k a year. Granted, some brought the high premiums on themselves, but others just due to the area they live, poor credit, or unavoidable accidents. Next comes the insurance companies that will gladly co-ordinate your auto and health insurance benefits but when it comes time to pay, they fight over who pays. The hospital doesn't care and will send the account to a collection agency against the insured.
     
  14. Nitro225Optimax

    Nitro225Optimax

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    My wife is a PI Attorney. She hates the current system and sees how everyone knows it’s broke, but plays the game to take in big profits.

    She is also doubtful any significant change will take place.

    The current insurance system is crushing poor people and it will continue to do so. The only reason change is even being considered is because it’s finally hurting the middle class enough to make a stink about it.

    Good credit? Good record? Still pay $100/mo per car? Think you’re doing great? You’d only pay half that in Ohio. People in Ohio don’t have insurance problems.

    It’s absurd we place Michigan in a bubble and think no-fault is the best option.


    Sent from my iPhone using Michigan Sportsman
     
    jiggin is livin likes this.
  15. david boyko

    david boyko

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    What does a persons credit or address have to do with a persons driving record?