If elected I will propose or support:
Michigan’s car insurance is a hopeless mess. Michigan ranks 39thin per capita income yet has the highest car insurance costs in the nation. The average Michigan policy is $1,500 per car more than Ohio’s ($2,400-$900).
Proposal I will make
Take Ohio’s insurance law, and write it word for word into the new Michigan law. This is the only sensible way to treat auto insurance. Auto insurance is like a tax code—either you make huge changes or you don’t accomplish anything. By switching to a totally new system you completely block special interests-Legislators will want to implement the Ohio system, and then fix any problems. This is a far better approach than the current one of trying to improve a horrible system-every little change is vigorously opposed by the myriad of special interests benefitting from the current program.
Many of you read the excellent March Free Press article comparing Michigan’s and Ohio’s systems. Overall, the benefits of switching Michigan’s system to Ohio’s, greatly outweigh the drawbacks. Switching systems is truly a politicians dream—70% of Michigan taxpayers pay $1,500 or less in state tax-the legislature can eliminate, at minimum, the equivalent of the entire state tax paid by 70% of the voters without cutting services provided by the state. This clearly has the potential for strong bi-partisan support.
Tags: Car Insurance