Michigan is Undergoing Changes in the No-Fault Law
Michigan is undergoing changes regarding No-Fault Law. There have been proposals for many years to change the No-Fault Law. Currently, with the new governor, and a new administration, I predict there’s going to be a lot of changes in the next six to twelve months. What those changes are is anybody’s guess.
The Reason Behind Michigan’s High Insurance Rates
Michigan has one of the highest rates in the country for insurance costs. This is because we have great benefits under no-fault law. If you hurt in an auto accident, you’re entitled to a lifetime medical benefits. The medical provider is allowed to bill the no-fault carrier top dollar for whatever they provide to the injured person. There are other reasons as well why the costs are so high, but the medical cost is definitely one of them.
Proposals to Change Michigan’s No-Fault Law
Proposals are being made to change some of that. For one, they’re talking about doing what is called cost containment. Just like Blue Cross Blue Shield only pays so much per procedure, they’re proposing that No-Fault do the same. We also have what’s called catastrophic claims, which means the lifetime benefits. This could be five hundred thousand or five hundred million dollars. We all pay a couple of hundred dollars extra a year to have our car’s insured because of the cost. Michigan also has one of the highest rates of uninsured drivers, so changes are needed. The questions is what to do with those changes.
Some proposals go too far, like eliminating personal injury, requiring only PLPD, and not giving any other options. Some proposals take away medical benefits. These proposals, in my opinion, are too drastic.
Be Aware of These Proposed Changes
Be aware of the changes to No-Fault Law. You’ll be hearing about them with the Legislature. Voice your opinion as to how these changes would affect you.
We Will Continue to Monitor These Changes
My office has been monitoring the No-Fault changes for years. I predict this will be the year that changes will be made. We’re keeping close tabs on what could and could not happen. So if you have any questions, make sure you talk to someone that knows what’s going on. If you have any questions on whether these changes are good for the consumer or bad, feel free to contact me at (989) 725-8118.
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