Friday, May 10, 2019

Car Insurance

Michigan has some of the most expensive car insurance in the country.

The new, Democrat governor wants to make it more affordable, especially for the most economically challenged Michigan residents.

One of the things she is demanding is that zip codes not be used to calculate rates.

From the FBI Uniform Crime Reporting site:
Motor Vehicle Thefts in the City of Detroit per 100,000 residents.....868
Motor Vehicle Thefts in Farmington Hills (close to where the Shekel lives)...145/100,000
Grand Rapids......72/100,000

This will play out in two acts.

The Governor's new law will force insurance carriers to level the cost of insurance against theft across the state. Currently, the cost of that portion of the insurance bill is easily five times as much in the City of Detroit as it is anywhere else in the state.

Bills for people living in Detroit will go down.

Bills for everybody else will go up....except....

Some insurance companies don't have sales offices in southeast Michigan.

Their very limited exposure to the risk inherent to selling to customers in the City of Detroit means they will not have to raise their rates.

Customers will flee the carriers that serve Detroit due to the toxic turd the Governor's new law tosses into the punch bowl.

It will be a major windfall for the regional carriers.

The rates in Detroit will climb back up because fewer and fewer out-state customers will opt to subsidize their rates.


  1. When we moved to Michigan in the early 90s our national insurance carrier would not cover us. We thought it odd until we got there...

  2. Worked on this. Oddly, Illinois accodentally eliminated rate regulation . The result was the lowest overall rates in the country. Been 10 years since the analysis so Don't know current situation. Highest overall rates where in N.Y. which has the heaviest hand in the country. It is easier to raise campaign money when you regulate something. Protecting the people you know.

    1. Robbing Peter to pay Paul will guarantee you Paul's vote.

  3. That will be interesting to watch play out! :-)

  4. Detroit drove Metropolitan Life out of car insurance in Michigan.

  5. If this comes to fruition, watch the govt. file suit against those carriers that don't serve metro Detroit, and the focus will be on racism.