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Gregor McGavin Online Auto Insurance News Rancho Cucamonga CA, 91730 909-784-2475 |
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On the heels of a report saying no-fault changes would hurt the state economy, the state chamber of commerce has released a study saying the changes are economically necessary.
Online PR News – 09-September-2011 –Michigan business leaders have entered the ongoing debate over that state’s no-fault auto insurance system with a study they say shows limits must be placed on how much medical care insurers are forced to cover for victims of serious accidents, according to Online Auto Insurance News.
According a study by the state’s Chamber of Commerce, Michigan has to lower the amount of personal injury protection (PIP) motorists are required to buy under state law in order to keep premiums from escalating further.
The study is the latest talking point in a continuing debate over Michigan’s system, which has spawned competing reports and generated a host of car insurance questions and concerns among state residents.
Currently, Michigan law requires coverage providers to pay for what in some cases can be a lifetime of medical and rehabilitative care for those who sustain catastrophic injuries in auto accidents.
The state is among the highest nationwide for policy rates, according to the Insurance Information Institute, which cited Detroit as having the highest average annual policy costs in the country last year.
"Michigan is the only state in the nation with a government mandate to purchase unlimited benefits," said Wendy Block, the Chamber’s director of health policy and human resources. "The current system forces Michigan drivers to pay among the highest premiums in the nation and, in many cases, for a level of coverage that's higher than they can afford."
Michigan’s system was modified in the 1970s in order to decrease the number of lawsuits arising from collisions. Anyone who buys coverage in the state must pay a fee—currently about $150—that helps cover PIP claims that are greater than $500,000.
Source: http://www.michigan.gov/documents/cis/MCCA_FAQ_2007_190996_7.pdf
A bill expected to be taken up later this year by the state Senate would allow motorists to buy as little as $50,000 in PIP coverage. Proponents say the legislation would lower premiums for consumers throughout the state.
Critics, however, say the proposed changes would profit insurers at the expense of Michigan motorists.
The Coalition Protecting Auto No-Fault—a group of lawyers, doctors and other health care providers—last month release the results of a survey in which nearly two out of three respondents said they were against changing the state’s existing system.
To learn more about this and other insurance issues, readers can go to http://www.onlineautoinsurance.com/learn/ where they will find informative resource pages and a rate-comparison generator that can help users quickly evaluate their coverage options.
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