Michigan car owners know how expensive insurance rates are in their state. Starting July 1st those rates will go up even more. That would be $22 more a year per each insured vehicle to be exact.
State Representative Pete Lucido (R- Shelby Township) is not happy about Michigan Catastrophic Claims Association’s announcement. He wants to know the reason behind this, especially since the catastrophic claims currently has $21 billion in its funds.
Lucido claims it is a mockery of the citizens and un-American. He announced his want to have the books open and know how much the company and its workers are making.
According to Lucido, the only ones to know this information is the association itself as it became a private fund years ago.
Michigan Catastrophic Claims say there is a mandatory fee that covers limitless medical benefits for injured drivers. The price is rising, so they say, because of higher than expected claims.
Lucido asks how the company is coming up with these numbers. He says the public has a right to know since they are the ones paying these rates.
The moment the state representative heard about the insurance increase, he called the association. They responded that it was private information and that they had no reason to speak with him.
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Michigan’s requirement of unlimited lifetime medical coverage was the reason for the creation of the catastrophic claims fund.
However, Lucido claims there is plenty of money while lawmakers keep battling the expense. An idea Lucido had in lieu of raising the rates was using the interest to fund something the state of Michigan desperately needs: better roads.
With interest itself over a billion dollars a year, there would be more than enough money to fix the pothole infested roads across the state. If our streets are improved, the interest rates will inevitably drop.
Once Easter break is over for state lawmakers, Lucido says he wants to work on introducing legislation to make the private fund public.