Your Auto Insurance Could Go Up

Do you believe you already pay high enough auto insurance rates?  Well guess what, your auto insurance could be going up again.

Yes you heard that correctly.  We spoke about this on my program a while back and now the Lansing State Journal is reporting that approximately 2 million of us Michiganders could be hit up for another $40 dollars a year per automobile.

Why?

In Governor Snyder's 2016-2017 proposed budget the Governor is asking for the repeal of a tax credit they say was mistakenly given to the insurance companies back in 2012.  This “fix” of their mistake would bring another $80 million into the coffers of Michigan’s treasury.

Do we not already pay enough for auto insurance in Michigan?  According to Insure.com Michigan pays the highest auto insurance rates in the country.  The national average is $1,325 and Michigan’s average rate is $2.735.

Bev Barney, the CEO of the Michigan Association of Insurance Agents, was quoted in the article stating:

If the credit is eliminated, it is the insured public who will pay through higher insurance premiums

Also in the article State Representative Al Pscholka, R-Stevensville, who currently is the chair of the Committee on Appropriations, was quoted stating:

This was a mistake made back in 2012. We shouldn't have Hollywood-style tax credits for the insurance industry

So their mistake is going to cost us once again, I guess he would say it will not really cost us because we never meant to reduce your auto insurance rates in the first place.

Is that what they want to hang their hat on?

State Rep. Pscholka has said recently that no one was initially aware that it would create a tax credit when oversight of the funds changed hands.  State Rep. Pscholka believes the threat of increased insurance rates is "dirty politics."

No one was “aware”, really State Rep. Pscholka?  Don’t you guys read these bills and know all the pro’s and con’s before you vote on it?  Or do you do what Congresswomen Pelosi does and the bill needs to be passed before we find out what is in it?

State Rep. Pscholka went on to be quoted in the article stating, “my advice to people would be to bid out their car insurance to find a cheaper rate," oh if it was as easy as that Rep. Pscholka.

The bill to eliminate the credit will be introduced this week.

When is our legislature and Governor going to work on providing Michiganders with affordable auto insurance?

I have been saying for a year or two that since we now have this wonderful Obama/SCOTUScare healthcare for all, why do we need the MCCA fund.   The elimination of that state mandated fund and the fees associated with it, currently $150 per automobile and motorcycle, would reduce our auto insurance rates quite a bit.

Let’s talk about this today on The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.

Or please feel free to start a discussion and write your thoughts in the comment section