No. This organization is committed to car insurance reform in the state of Michigan, which has the highest rates in the country, even though it has some of the best motorists.

No. MAIRA is completely independent from any commercial enterprises. It is an organization of Michigan drivers, for Michigan drivers.

Michigan car insurance rates are double the national average, and are structured so you are required to pay a lot of money (often $1000 per year, per family) for something you don’t need. This is Personal Injury Protection, or PIP, which covers all medical bills for any injury resulting from a car accident for the rest of your life.

Because you probably already pay for this coverage, in your health insurance. Health insurance providers can no longer drop you because of a car accident, as they could when the law was originally written. Further, if you lose your health insurance because you lose your job and are unable to work, you can be enrolled in Medicaid and have health care coverage with no limits.  

Because trial lawyers and hospitals run powerful PACs giving money to legislators to keep it in place. Mandatory PIP coverage gives a lot of your money to car insurers, who are then compelled to spend this money on accident victims via lawsuits from trial lawyers and hospitals, who bill whatever they want. The average accident in Michigan costs over $70,000, the average accident in the next closest state costs $13,000. This is only because of the existence of PIP. It’s very lucrative for the two groups, and they make a lot of money, and want to keep it that way.

Prior to the Affordable Care Act, also known as Obamacare, this was actually sensible health insurance for some people. If you are a healthy single person younger than 40, the most likely cause of health problems is a car accident, so you could carry this and nothing else. But, that’s not the case anymore, since mandatory health insurance comes with no lifetime caps anyway. 

There have been many efforts at reform over the past 30 years, including several ballot initiatives. This is a complicated and unsexy problem, and trial lawyers do a great job spreading half-truths and misinformation to keep their business going (just Google Michigan auto insurance, and the number of misleading, biased websites is incredible). Insurance companies have advocated for change, but can’t give much PAC money, because the recipient would simply look like a shill for the insurance industry. So, a sustained commitment from a consumer’s group makes the most sense. 

Yes, some will definitely fall to Medicaid. But Medicaid has a set fee schedule much lower than car insurance gets billed by hospitals to treat people, which will lower everyone’s bill. Further, neither car insurance, nor legal fees, nor medical bills are subject to sales tax. So, if every Michigan driver had ~$500 in his or her pocket and spent it, the state’s ability to pay these fees increases. Lastly, Medicaid does not cover horse therapy, aromatherapy, or changes in property taxes. Every other state does this, Michigan can too.

A law could be written which would make you completely free to purchase long-term care insurance, Cadillac health insurance, and any other health care you want, for you. But if you would rather save $100 per month for your family, you can do that.

You do pay $170 per year, per driver, to the MCCA for injuries to motorists which cost over $550,000. However, the majority of injuries are between $1 and $549,999, which is paid for by you, through your PIP coverage, through your car insurance. You are definitely spending more than $170 a year for other peoples’ health care via your automobile insurance. 

$50 per month translates to over $500 a year. Over 10 years, that’s $5000 you could have used to invest in a home, business, or anything else. Additionally, try expanding your vision to your entire street or block. If you, and everyone on your block had $50-$100 in their pockets every month, imagine how lovely and wonderful life might be.  

You’ve done part of this job already by asking! Please email in your email address for regular updates about the mission. Then, check out the legislative database, and contact your state representative with questions about their motives about car insurance. Educate your friends and family. And check back in for updates!