The law makers in the state of Michigan have rekindled the debate about the auto insurance laws in the state, calling for better transparency in the way auto insurance companies compute the premiums and also requesting for reforms that can make a difference. Last month, the Michigan Catastrophic Claims Association, announced that all insured drivers in the state have to pay an extra $30 per automobile each year which will hike the assessment per vehicle to $175. The association has announced this increase to cover certain benefits such as the unlimited lifetime coverage that Michigan offers to insured drivers in the state. This hike of 21 percent will help in covering the medical costs that arise due to auto accidents.
With legislators in Michigan already considering significant changes to the current no-fault auto insurance coverage, the law may be prone to reforms later this year. The auto insurance reforms that are pending approval by the state legislature will facilitate lower auto insurance premiums which will be the result of a limited PIP coverage. Despite this, certain law makers in the state are calling for immediate and fast action and have also asked the claims association to share more information about how the auto insurance rates are being determined currently.
Redford Township’s Democrat Representative Phil Cavanagh said that it is impossible to continue further discussions about the state’s no-fault insurance without analyzing it thoroughly and determining the loopholes. Talking about the Michigan Catastrophic Claims Association, he said that it is imperative that people need to be informed about the certain aspects about computation of premiums. The bills proposed down by Cavanagh, which calls for the association to accept the freedom for information regulations and open meetings, is not likely to move forward in the Michigan legislature which is being led by Republicans. Such moves that were undertaken in the past have also fizzled out because the Michigan Catastrophic Claims Association is a non-profit, private association that comprises of many leading auto insurance providers.
