The people of Michigan just cannot wine when it comes to car insurance rates. The latest effort to “help” Michigan drivers lower their car insurance rates would to add a $2 charge to each vehicle insured in the state. That’s right the state wants to control costs by increasing premiums.
That means the average resident of Detroit pays 130% more for car insurance than a driver in the next most expensive region, New York City. New Yorkers paid 36% more than the national average. It also means that a Detroit resident pays 208% more than a person in Charlotte, N.C., which has the nation’s cheapest car insurance. People in Charlotte pay 43% less than the national average.
Some other companies could win from the deal, including Mason Graphite Inc. (LLG), a Canadian company that owns a Lithium Mine in Silver Peak, Nev. Seeking Alpha commentator Randy Carson noted that the legislation approved on Sept. 11 requires the state of Nevada to build a direct road connection between the Giga Factory and U.S. Highway 50, which runs past Silver Peak. That’s important because lithium is the main ingredient in Tesla’s batteries.
A man named Bill Portz found this out the hard way, Lieber noted. Portz and his neighbor simply called his insurance company to ask if they had a claim after Portz’s truck hit his neighbor’s wall. Neither person filed a claim, but Portz’s premium went up by $200 a year.
Like health insurance, auto insurance is fast becoming a political issue that is attracting big money and political action committees. Auto insurers are increasingly spending big money to ensure favorable treatment from politicians and the courts.
State Farm is the largest auto insurer in Louisiana; around one third of the state’s drivers have State Farm policies. Louisiana historically has had some of the nation’s highest car insurance rates.