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Michigan Lawmakers Try to Address High Insurance Costs Again...

Michigan Lawmakers Try to Address High Insurance Costs Again

It looks like Michigan’s drivers are about to be betrayed by their state legislature yet again. The latest attempt to fix the state’s imbecilic auto insurance fails to take any meaningful action to bring down the nation’s highest car premiums. A bill that would “reform” auto coverage in Michigan leaves the state’s no-fault insurance system, which makes it impossible for insurers to raise rates for bad drivers intact, The Detroit Free Press reported. To make matters worse, nothing is being done to curb the Michigan Catastrophic Claims Association (or MCCA), a bureaucracy that guarantees medical care for catastrophically injured accident victims for life. The MCCA is one of the...

RECENT FROM Car Insurance News

An Interesting Question about Self-Driving Cars...

An Interesting Question about Self-Driving Cars

The first reported death caused by the crash of a self-driving car raises an intriguing question: does existing insurance actually cover autonomous vehicles? Was Joshua Brown actually insured when his Tesla Model S collided with a semi-tractor rig in Florida on May 7? That question has to be asked because Brown was reportedly using Tesla’s autopilot; self-driving feature, when the accident occurred. Brown might not have been covered even if he had insurance, because the policy may not have been written to include self-driving vehicles. The policy might not be valid because liability for the accident has not been assigned. The real question is who was liable for the...

RECENT FROM Car Insurance Rates

Michigan’s Auto Insurance Rates to Rise Again...

Michigan’s Auto Insurance Rates to Rise Again

America’s most expensive auto insurance premiums are about to go up again. Around two million Michigan drivers will end up paying another $40 a month on their insurance, The Lansing State Journal reported. Rates will increase for customers of Michigan based insurance companies such as Auto Owners, AAA and Frankenmuth Insurance. Rates are going up because the State Legislature removed an $80 million tax credit from the 2016-2017 budget. The credit finances a reimbursement fund which is an auto insurance mechanism unique to Michigan. The reimbursement fund pays companies back for damage caused by uninsured drivers. The fund exists to solve a problem that the Legislature created in the...

Uber Forced to Eat Cost of Background Checks...

Uber Technologies Inc. will be forced to eat the cost of background checks in the United States. US District Court Judge Jon Tigar made that inevitable by allowing a class-action lawsuit directed against Uber’s $1 “safe rides fee” to go forward. Uber had been trying to settle the suit for $28.5 million but Tigar did not buy it. Instead he called the settlement unfair based on Uber’s revenues. Evidently Tigar did not see news stories that indicate Uber lost $1.27 billion, during the first six months of 2016. Uber paid $10 million to dispose of a similar lawsuit brought by some California prosecutors in April 2016, Insurance Business America reported. The Safe Rides fee was introduced in April...

Uber Forced to Eat Cost of Background Checks
posted on: Sep 8, 2016 | author: admin

Tesla Thinking of Entering Auto Insurance...

Elon Musk’s Tesla Motors (NASDAQ: TSLA) is considering another radical paradigm shift; offering its own auto-insurance policies. Insurance Business America reported that Tesla is talks with AXA General Insurance of Hong Kong and QBE Insurance in Australia to create policies for its vehicles. The move may not affect Tesla’s American operations because the US auto insurance business is heavily regulated. Yet it is an interesting one because it goes against the prevailing industry model where insurance policies and vehicles are sold separately. Tesla seems to be taking advantage of insurance aggregators; a kind of online insurance marketing widely used in the United Kingdom and a few other countries. Aggregators have not been very successful in the US because...

Tesla Thinking of Entering Auto Insurance
posted on: Sep 5, 2016 | author: admin

Self-Driving Cars are on the Road

The age of self-driving vehicles has arrived. Uber is testing the world’s first fleet of autonomous ride-sharing vehicles on the streets of Pittsburgh, Pennsylvania. News reports indicate that the controversial unicorn has begun testing autonomous Ford Fusions; and will soon test Volvo XC90 self-driving SUVs, in the steel city. Some news stories indicate that Uber plans to test up to 100 self-driving vehicles with human drivers in the city. The testing is being overseen by John Bares; the former head of Carnegie Mellon University’s National Robotics Engineering Center, Bloomberg reported. Bares was one of dozens of robotic experts Uber CEO Travis Kalanick hired away from the University last year. Kalanick travelled to Pittsburgh to launch the tests on...

Self-Driving Cars are on the Road
posted on: Aug 22, 2016 | author: admin

Michigan’s Auto Insurance Rates to Rise Again...

America’s most expensive auto insurance premiums are about to go up again. Around two million Michigan drivers will end up paying another $40 a month on their insurance, The Lansing State Journal reported. Rates will increase for customers of Michigan based insurance companies such as Auto Owners, AAA and Frankenmuth Insurance. Rates are going up because the State Legislature removed an $80 million tax credit from the 2016-2017 budget. The credit finances a reimbursement fund which is an auto insurance mechanism unique to Michigan. The reimbursement fund pays companies back for damage caused by uninsured drivers. The fund exists to solve a problem that the Legislature created in the first place. Michigan’s auto insurance rates are so high...

Michigan’s Auto Insurance Rates to Rise Again
posted on: Aug 10, 2016 | author: admin
Progressive wants Maine’s Senior Citizens to Pay Higher Rates for Car Insurance

Progressive wants Maine’s Senior Citizens to Pay Higher Rates for Car Insurance...

posted on: Jul 23, 2016 | author: admin

Progressive (NYSE: PGR) wants to become the first company to charge older drivers higher rates for auto insurance. In an unprecedented move, Progressive has asked Maine’s Bureau of Insurance for permission to raise premiums for those over 65. A 65-year old driver would be charged six percent more than a 64-year old under the proposal, The Portland Press-Herald reported. Progressive had initially wanted to charge a higher rate as drivers got older but now wants to raise rates at 65, but the Bureau turned down the request on June 10. The Bureau said no because of a state law that bans insurers from basing premiums on age in Maine. The measure would only affect new policies and not existing customers, The Press-Herald reported. If it were approved, the increase would be the first in the country that charges older drivers more based on age. Age-based insurance rates are nothing...

An Interesting Question about Self-Driving Cars

An Interesting Question about Self-Driving Cars...

posted on: Jul 10, 2016 | author: admin

The first reported death caused by the crash of a self-driving car raises an intriguing question: does existing insurance actually cover autonomous vehicles? Was Joshua Brown actually insured when his Tesla Model S collided with a semi-tractor rig in Florida on May 7? That question has to be asked because Brown was reportedly using Tesla’s autopilot; self-driving feature, when the accident occurred. Brown might not have been covered even if he had insurance, because the policy may not have been written to include self-driving vehicles. The policy might not be valid because liability for the accident has not been assigned. The real question is who was liable for the accident? Was Brown at fault, some witnesses claim he was watching a movie on DVD instead of driving? Or was Tesla at fault because the autopilot failed to notice the semitrailer? If Tesla is at fault; that means the automaker;...

Study Car Insurers Gouge Working Class

Study Car Insurers Gouge Working Class

posted on: Jul 8, 2016 | author: admin

Auto insurers are effectively gouging the working class, the Consumer Federation of America is charging. The average blue collar worker pays $681 more a year for auto insurance than a white collar worker, a market analysis conducted by the Federation found. People with indicators of high social economic status paid $1,140 a year for car insurance, those with indicators of low social economic status paid $1,825 a year. The Federation found that such factors as having just a high school diploma, or renting a home; were more likely to lead to higher rates than actual driving records. Executives were charged less than a woman who worked as a bank teller, and a male factory worker, even though the driving records were identifical. How Insurers Profit from the Working Class Almost all the major insurers seem to engage in this practice, a New York Times article on the analysis found....

Uber and Lyft Almost thrown out of Chicago

Uber and Lyft Almost thrown out of Chicago

posted on: Jun 28, 2016 | author: admin

Uber and Lyft almost got thrown out of America’s third largest city; Chicago. The app-based solutions dodged a major bullet; when the Windy City’s council rejected stricter regulations that would have driven them out of town. The Council voted 36 to 16 on June 23; to kill a plan that would have required networked transportation drivers to follow the same rules as cabbies, The Chicago Tribune reported. That would have required their drivers to attend classes, undergo background checks and get fingerprinted. Instead the council approved a watered-down deal; engineered by Mayor Rob Emanuel, preserves the status quo. The deal is controversial because Emanuel and other politicians worked it out behind closed doors at the last minute. Interestingly enough the new ordinance lowers the bar for cab drivers and ride-sharing drivers alike. Under the new rules; all drivers will have to get a public chauffeur’s license, but they will...

Fiat-Chrysler Seeks Uber Deal

Fiat-Chrysler Seeks Uber Deal

posted on: Jun 20, 2016 | author: admin

Fiat-Chrysler Automobiles (NYSE: FCAU) wants to partner with Uber on self-driving cars. Fiat wants to enter into a joint venture in order to get access to Uber’s self-driving car technology, Bloomberg reported. Uber is currently working with Ford (NYSE: F) on autonomous vehicles; but it is unclear if the two companies have a formal arrangement. The purpose of the venture would be to create a platform for a self-driving ride-sharing vehicle. Uber is currently developing such vehicles in Pittsburgh, where it has demonstrated autonomous Ford Fusions to the media. Fiat and Alphabet (NASDAQ: GOOG) entered into a partnership to create a self-driving minivan based on Chrysler’s Pacifica; and Dodge Grand Caravan, platform last month. It is not clear how that deal will be affected by the Uber alliance; given the increasingly contentious relationship between Uber and the company formerly known as Google. Uber working with Walmart and Toyota Uber...

Future Looks Bright for Electric Cars

Future Looks Bright for Electric Cars

posted on: Jun 18, 2016 | author: admin

A massive boom in the electric car business might be right around the corner. Two recent news stories indicate that the market for such vehicles might expand dramatically in recent years. Ford (NYSE: F) has discovered that getting internal combustion engines to comply with air-pollution and fuel-mileage regulations is much harder than previously thought. Around 40% of the new models of the popular F-150 pickup truck failed to meet federal standards for fuel mileage, Bloomberg reported. That’s a big problem for Ford because the F-150 is its best-selling vehicle in North America; accounting for 31% of its home market sales. To make matters worse it was the larger more powerful models customers like best that were more likely to fail the tests. That indicates a new technology is necessary; and electrics are the probable candidate. Currently electric vehicles are the autos that can produce the speed and power drivers...

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