Massive car insurance rate increases are coming to a number of states including Colorado and Michigan. That’s the word from some industry experts and news reports.
A 15% increase in rates might hit drivers in the near future, Carole Walker of the Rocky Mountain Insurance institute told Denver’s Channel 7. Note this would not be that much because the average driver in Colorado is paying around $130 a month for coverage, but it still hurts.
Walker predicted that expensive new technologies such as backup cameras, electric drive trains, sensors and autonomous driving features can greatly increase repair costs. Record hail damage, growing population, and a growing number of fatalities and injuries in vehicle crashes, also contributed.
Colorado Increase Nothing compared to Michigan
Colorado drivers have it easy when compared to Michigan residents; who already pay an average of $213 a month for auto insurance. The yearly car insurance bill in Michigan is about to go up by $160 to $170 a year.
The reason for this is the no-fault auto insurance system in Michigan; in which every driver has to pay for $555,000 medical costs for seriously injuries through a scam called Personal Injury Protection, Michigan Live reported. This system is completely unnecessary because Medicaid would cover the medical costs of injured people anyway.
What is even dumber is that poor people who cannot work because of accident caused disabilities already get basic income through Social Security Disability – which is paid for by taxes. The only people who benefit from this scam are personal injury attorneys who pay for a nice big house in Florida and a boat with the proceeds.
It also shows that the real cause of high-auto insurance costs is the morons in our state legislatures. If the Michigan state legislature simply abolished no-fault and Personal Injury Protection average insurance costs in the state would drop to around $130 a month or lower.
Warren Buffett thinks Self-Driving Cars will hurt Auto Insurers
“If driverless cars become pervasive it would only be because they were safer,” Buffett told the groupies at Berkshire Hathaway’s annual shareholders’ meeting. “That would mean the overall economic cost of auto-related losses had gone down and that would drive down the premiums.”
Berkshire Hathaway (NYSE: BRK.B) owns GEICO; one of the nation’s largest and best known auto insurance brands. Berkshire Hathaway (NYSE: BRK.A) is heavily invested in a wide variety of insurance.
“If they make the world safer it’s going to be a very good thing, but it won’t be a good thing for auto insurers,” Buffett said of self-driving vehicles. Buffett did not go into specifics but it is obvious he is concerned about self-driving vehicles, The Drive reported.
Autonomous vehicles will require special insurance in the United Kingdom, the Drive reported. A bill in Parliament would require the coverage for any vehicle that the UK’s secretary of state would deem “self-driving.” Details about the cost of the insurance were not available.