Lawmaker: Michigan no-fault insurance hike is 'a farce'
(WJBK) - To say State Rep. Pete Lucido (R-Shelby Township) is upset about the latest insurance rate hike, would be an understatement.
On Thursday the Michigan Catastrophic Claims Association announced starting July 1st - you will pay $22 more a year -- bringing the total to $192 a year for each insured vehicle.
Lucido wants to know why since the catastrophic claims fund currently has $21 billion.
"This is a farce, this is un-American and uncivilized in today's society," Lucido said. "We shouldn't be paying for this; we need to have them under oath. We need to have those books open. We need to know how much people are making and where that money goes."
Lucido says the only people who do know is the Michigan Catastrophic Claims Association because years ago it became a private fund.
The organization claims the mandatory fee to cover unlimited medical benefits for injured drivers are going up because of higher than expected claims.
FOX 2: "They say prices are going up, because claims are going up?"
"I would like to hear it from this - how are you assessing these claims," Lucido said. "This ought to be transparent and open public because we are paying the rates."
Lucido says as soon as he heard about the rate increase, he called the insurance association and the response not what he was looking for.
"This is a private fund, this is proprietary information and we have no reason to speak to you - (I said) no reason?" he said. "I am a legislator - it is time to open those books."
Michigan is the only state to require unlimited lifetime medical coverage - which is why the catastrophic claims fund was created.
But Lucido says there is more than enough money in there while lawmakers continue to battle the expense. Instead of raising the rates - Lucido has said the state needs to use the interest to fund something we all desperately need right now.
"The interest alone over a billion dollars a year why can't we use the money to fix our roads," he said. "We are driving on crappy roads in this state we got people telling us a fairy tale about our insurance that can bring our rates down."
When state lawmakers get back after Easter break, Lucido says he wants to introduce legislation to make this private fund, public.