viewautomotive.net – Re: The April 11 Editorial” Shut off the automobile insurance windfall “: You missed the mark by failing to share with readers that the automobile insurance levy ascribe reduces the cost that automobile insurance shoppers are forced to pay for rendering boundless, lifetime medical benefits to people injured in collisions caused by uninsured motorists .
The Legislature, in 1973, formed the Assigned Claims Plan to provide the state-mandated no-fault automobile insurance benefits to the uninsured and assess all automobile insurance companies to fund the claims. The principle dictates that the cost will be passed on to automobile insurance companies and they’re the consumer who already compensates some of higher automobile insurance charges in the two countries. This surcharge now amounts to over $40 per vehicle to the average automobile insurance policy in Michigan.
The tax credit, received by some automobile insurance companies when the Assigned Claims Plan was moved from the state to an insurance association, reduces the $40 cost on Michigan insured motorists.
Who compiles from the Assigned Claims Plan? The Assigned Claims Plan, for example, would support no-fault boundless, lifetime medical benefits to a pedestrian or bicyclist who did not own vehicle and was hit by an uninsured vehicle or in a hit-and-run coincidence. In these cases, “they don’t have” automobile insurance policy to provide the” innocent party” with the state-mandated automobile insurance benefits although there are these men did not compensate anything into the automobile insurance system.
The cost of this system has grown from $12.5 million in 1998 to an estimated cost of over $242 million in 2015. Today, in addition to bicycles or pedestrians, more and more of the Assigned Claims Plan recipients are passengers in uninsured vehicles since Michigan has the fifth highest( 21 percent) approximated uninsured engine vehicles pace in the country. Uninsured motorists who are driving their own vehicle cannot recuperate no-fault insurance benefits, but their passengers can.
There is no” automobile assurance windfall .” The taxation recognition offsets some of the costs paid by automobile assurance customers, and transportations it to general taxpayer dollars. This begs the question: Who should pay for these free, state-mandated social benefits? Should individual automobile insurance companies and their customers pay for these costs, or all Michigan taxpayers, either through a taxation movement or immediately?
This administration was are well aware of the tax implications of the transfer of the Assigned Claims Plan before the governor signed the invoice into the constitution. The taxation recognition has been in place for three years and now due to funding editions, its management and particular lawmakers want to eliminate it.