This week, a bill package was introduced that would reform Michigan’s no-fault auto insurance system. The goal of the package is to bring significant relief to drivers paying the nation’s most expensive insurance premiums. “The effort to reform the state’s current no-fault insurance system has been ongoing for several years and thus far none of the proposals have successfully made their way through both the House and the Senate,” said MLC lobbyist Tony Des Chenes.
The plan would still mandate that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering. The legislation will continue benefits for everyone already receiving lifetime health care after a catastrophic traffic accident. The package also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association until it is no longer needed. Additionally, the fund would be closed to new entrants. The bill sponsors believe this will drive down rates further because it will increase competition from insurance companies coming back into Michigan. The legislation was referred to the House Insurance Committee for further consideration.
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