That's a whole lot of $$$$$$$$$$$ Donny: $80-$100 for every licensed vehicle in Michigan surcharge? each year? You don't really think all that goes to the victims (and their lawyers :gt: ). Something smelly there........... BlackGold: You have any input on this? Where's the money going?
Man, I'm not even a member yet and I'm being called out -- by none other than Dave H himself!!! OK, you win. I've been lurking here for about a year, but now you gone and got me to register, Dave. As Donny said, the big surcharge goes into the Michigan Catastrophic Claims Association, or something like that. Some insurance companies break it out as a separate charge, others seem to spread it across your itemized coverages. This fee is what provides us here in Michigan with UNLIMITED medical coverage for injuries related to auto accidents. We are the only state to offer this (ahem) essential coverage. Personally, if it costs more than a half-million to keep me alive, there's probably a beter way to spend the money. Anyway, the idea is that no single insurance company could ever afford to pay an unlimited claim, so the government set up this fund that all the insurance companies pay into (with our premiums, of course). The state is completely incompetent in setting the fees for this fund in any manner which would resemble a stable, closed-loop control system, so we get the situation where several years ago we all get a big refund, then we pay nothing for several years, now this year they sock it to us again. Sheesh. To make a long story longer, my high-up political connection would insist that these funds are not misappropriated. I can believe this; I would expect UNLIMITED coverate to cost a lot. That's why every other state is smart enough not to do it. Dave, I'm looking forward to testing your theory about cars with collector plates not having to pay the surcharge. I hadn't heard this before, but I'll be sure to give it a try when I pull my W-30 out of storage next spring.
I knew I could flush you out! Michigan seems to always have some very innovative ways to get monies from the working people in the state (especially the outstate people). With the latest exposure of the new Guv's strategy to hold back a planned tax decrease to fund the schools (which have 1.8 billion in their rainy day fund) I know there's some very creative politics and budgeting going on. If the last 2 years haven't been "rainy" days in Michigan, I don't know what would constitute one. Seems like they always have these big funds that appear and disappear every so often. :grin: Not a theory on the plates, I already got mine reduced $80 per car. That was over half the annual premium.
