Michigan has always boasted of a unique auto insurance system when compared to the rest of the states. However, there are proposals to bring about some changes to this system. This would be a hot topic for discussion in the Michigan Legislature.
Michigan is the only state in the US that provides unlimited medical coverage for those who are seriously injured in motor vehicle accidents. However, if the proposed changes come into effect, all of that is bound to change. Motorists will then have an option of choosing a less expensive insurance coverage where they would only get limited PIP coverage.
Those in favor of the change claim that this will allow motorists to opt for the less expensive coverage and avoid the expensive one, which they don’t want or one that they cannot afford. The entire system has been getting really out of bounds for most people as insurance has become very expensive and is proving to be a threat to the insurance sector in the state of Michigan.
Senator Joe Hune states that the medical costs are skyrocketing and it is likely to reach a tipping point very soon, as the systems are unsustainable. Hence, some drastic measures have to be taken to bring down the costs.
However, John Cornack, President, Coalition Protecting Auto No-Fault has stated that the proposed legislation comes nowhere close to meeting the requirements of victims who suffer catastrophic injuries in accidents.
This coalition that has opposed these proposed changes consist of trial lawyers, hospitals, health groups as well as other organizations. All these opponents to the proposal have been lobbying with business groups and auto insurance companies, which want an alteration in the system.
Presently, all policyholders in Michigan are expected to purchase unlimited medical benefits that come as part of the insurance coverage. The regular policies usually cover up to $500,000. Limits exceeding this amount are reimbursed by the Michigan Catastrophic Claims Association.
This association was created during the late 70’s and presently covers medical costs for approximately 12,800 victims across the state of Michigan. Those who are presently in the MCCA system will still have unlimited coverage, according to supporters of the proposed legislative plan. However, there will be no guarantee on coverage for the ones who suffer catastrophic injuries in future. Motorists would instead have options for PIP coverage that ranges from $250,000 to $5 million, according to the proposed legislation that is likely to be introduced this month.
