Michigan’s “No Fault” auto insurance continues to be a hot topic. In April of this year Michigan Governor Rick Snyder proposed “sweeping changes to Michigan’s no-fault auto insurance system in an effort to lower costs for consumers.” (via MLIVE)
A battle has been brewing between those that support reforming Michigan’s “no fault” ; the Coalition for Auto Insurance Reform, or C.A.I.R., and those defending no-fault, the Coalition Protecting Auto No-Fault, or C.P.A.N.
Allow me to explain, No-Fault auto Insurance is required by law in Michigan. If you have an accident, no-fault insurance pays for your medical expenses, wage loss benefits, replacement services, and the damage you do to other people’s property. It does not matter who caused the accident. (via Mich Gov)
The heart of this debate surrounds the Personal Injury Protection piece of every No-Fault Policy. Currently if you are injured in a car accident your policy will provide you with lifetime medical coverage.
The largest piece of this proposed reform would be a 1 million dollar cap on medical care benefits.
Coalition for Auto Insurance Reform supporter Wendy Block, Director of Health Policy and Human Resources at the Michigan Chamber of Commerce says “Michigan’s no-fault auto insurance system is in desperate need of reform…the cost of auto insurance is hurting our economic recovery.” (via CAIR)
While C.A.I.R. blames the mandated unlimited, lifetime medical coverage for the shocking 20% of Michigananders driving around without insurance, simply because they can’t afford it; The Coalition Protecting Auto No-Fault says the projected “savings” of this reform will equate to $10 per month for only one year.
C.P.A.N. says, “As a result Michigan’s most catastrophically injured victims would be pushed onto the Medicaid Program, allowing insurance companies to keep the leftover money, likely amounting to a multi-billion dollar windfall.” (via CPAN)
“Claims about ‘SKYROCKETING’ auto insurance rates in Michigan are misleading and false”, says attorney Steven M. Gursten “Significantly, the average automobile insurance premium in Michigan was lower in 2010 than it was in 2003, 2004, and 2005, according to the National Association of Insurance Commissioners (NAIC) data” (Michigan Auto Law)
We can expect more updates on this issue in the coming weeks.
Visit the links below to conduct your own investigation and let’s hear what your take is on the debate below.
I’m Ryan Gliesman for Kapnick Insurance Group.