A bill currently in the legislature would allow for lower minimums on PIP policies
Online PR News – 02-September-2011 – – Nearly two-thirds of respondents to a recent survey are against the idea of changing Michigan’s no-fault insurance system so that motorists will have lower requirements for personal injury protection (PIP) coverage, according to Online Auto Insurance News.
The results of the survey by the Coalition Protecting Auto No-Fault are the latest update in the ongoing debate over Michigan auto insurance laws and what, if any, limits should be placed on the medical care insurers are required to cover for accident victims.
Michigan’s system was changed nearly 40 years ago to allow for lifetime coverage of policyholders who are seriously injured in car accidents. The changes, which were brought about to cut down on the number of lawsuits arising from collisions, meant that motorists could basically no longer file lawsuits after a crash.
All state residents who buy coverage must pay a fee that goes into a fund that helps pay for PIP claims of more than $500,000. That fee is currently nearly $150 per vehicle.
A state Senate bill introduced earlier this year would alter Michigan law to let drivers carry as little as $50,000 in PIP coverage. Proponents say the legislation would mean less costly premiums for consumers statewide.
Michigan is among the most expensive states nationwide in which to insure a vehicle, according to the Insurance Information Institute.
But critics contend that the proposed law would benefit only insurers, freeing them of the responsibility to pay for necessary medical and rehabilitative repair.
“Accident victims in our state can get the care they need without bankrupting their families and turning to welfare,” John Cornack, president of the coalition and head of an Ann Arbor-based rehabilitation center, said in a news release. “It’s not worth throwing away the best auto (coverage) system in the nation just to save a couple bucks.”
The issue is expected to be taken up later this year by the state Senate.
To learn more about this and other insurance issues, readers can go to http://www.onlineautoinsurance.com/michigan/ where they will find informative resource pages and a rate-comparison generator that can help users quickly evaluate their coverage options.