Detroit has the highest auto-insurance premiums in the country, according to carinsurance.com. This has led to half of Detroiters driving their vehicles illegally, because they cannot afford their costly insurance. There is no question that Detroiters deserve comprehensive no-fault reform that reduces medical costs to insurers, addresses fraud and offers real savings to drivers. Once elected to the Michigan House, I will work to:
- Stop “D Insurance” Although most Detroiters oppose "D Insurance", Mayor Duggan has been working to get “D Insurance” through the Michigan Legislature, via Senate Bill 288. This would allow insurance companies to offer Detroit residents a policy that would provide minimal benefits and limit the options that Detroiters would have once in an accident (54% of Detroiters oppose “D Insurance.” EPIC-MRA, 2016). As District 1’s next Representative, I stand WITH Detroiters AGAINST “ D Insurance"!
o “D Insurance” does not guarantee even one dollar in savings.
o “D Insurance” Offers Detroit Residents Sub-standard Personal Injury Protection & Catastrophic Care. After an accident, those with “D-Insurance” will only be eligible for $250,000 worth of medical coverage. This cap applies to the ALL of the bills for EVERYONE in the vehicle insured by that policy.
o “D Insurance” Calls for Pre-Authorized Treatment & Managed Care. “D-Insurance” will require insurance companies to “pre-authorize” care based on what the insurer believes is necessary. If treatment is provided without pre-authorization, “D Insurance” will not pay.
o Accident victims with “D Insurance” policies will no longer be able to choose their own doctors. Instead, they will have to see a doctor in their insurer’s network.
o “D Insurance” Eliminates Coverage for Children of Uninsured Motorists. Michigan guarantees that children who are seriously injured in auto accidents receive comprehensive medical care, even if their parents failed to buy auto insurance. There is no cap to this coverage and it is available for the entire life of the child, as long as the injury exists. Under “D Insurance,” children of “D Insurance” policyholders will be denied the coverage available to all other children in the state.
o “D Insurance” Could Lead to Increased Costs for Rest of Michigan “D Insurance” will shift costs from insurance companies to the taxpayers. Any medical expenses not covered by “D Insurance” will fall on a drivers medical insurance. Anyone who has a “D-Insurance” policy will no longer pay into the Catastrophic Claims Fund, leading to higher assessments for the rest of the state.
o “D-Insurance” is not limited to Detroit! It would apply to any city where half of the drivers are uninsured.
- End credit scoring as a rate setting factor for auto insurance. Drivers with low credit scores pay much more for insurance than drivers with high credit scores, even when both drivers have safe driving records.
o Credit reports, the main factor in determining credit scores, can be full of errors and inaccuracies, with no consequence to the reporting agency in error.
o Using credit based scoring increases the cost of insurance premiums, forcing poor drivers to drive uninsured.
Once elected to the Michigan House, I will work to join California, Hawaii and Massachusetts as states that prohibit auto insurers from using credit scores when pricing policies.
- Create a fraud authority that will investigate consumer fraud and complaints against insurers.