Auto No-Fault Changes Proposed By Governor And State Lawmakers

Apr 18, 2013

The debate over changing Michigan’s no-fault auto insurance system is underway in Lansing.

Governor Rick Snyder Thursday  introduced his plan to end unlimited lifetime medical benefits for people severely injured in auto accidents.

The Michigan Public Radio Network’s Jake Neher has more.

The governor’s plan would cap those benefits at a million dollars. Supporters like House Insurance Committee Chair Pete Lund say that’s still far higher than any other state.

“Understand that right now, Michigan – when it comes to benefits – we are number one in the country,”  he says.  “And if this bill passes, we will drop all the way to number one.”

Lund and Governor Snyder say the unlimited medical benefits are forcing insurance rates up for every driver in the state.

But opponents of the changes say there’s no guarantee rates will drop in the long run. They say it would just shift the costs to the Medicaid system and taxpayers.

Lund introduced a bill to cap the no-fault benefits two years ago, but it never made it out of the House.