Michigan residents not happy with the proposed changes to the no-fault auto insurance


Michigan residents not happy with the proposed changes to the no-fault auto insuranceMichigan is one of the few states in the country which has a high effective no fault car law. This law is so functional that it serves a model for other states that would like to bring this into effect. However, despite the fact that this law is highly popular, Michigan lawmakers are in a hurry to make changes, citing the fact that it will reduce overall cost. The residents are crying out loud against this move because the law is not defective for it to be repaired.

The No Fault law in Michigan has a privately funded system to ensure personal injury protection for the lifetime to people who are grievously injured and need complete injury and rehabilitation perks to help the, get back to their normal life they led before the accident. Thanks to the no fault law in the state, victims of accidents are made privy to the perks such as accident care, lost wages and medical expenses coverage as long as they had valid auto insurance policies at the time of the accident. Registering a mini tort claim, first party claim or third party claim will allow the victims of the accident to recover the damage, as per the no fault law in the state.

The existing no fault law stipulates that there is no limit to the medical coverage extended to victims which includes covering the medical expenses for treating all types of injuries, in addition to the catastrophic ones. Two bills have been introduced in the Michigan Senate by the legislators in the state which seem to be a misguided attempt to reduce overall costs. As per the new proposal laid down by the Michigan legislature, victims will not be granted to accident victims even if they suffer grievous injuries in the accidents that necessitate the need for lifelong medical care.

According to the rules of the proposed legislation, those seeking no fault coverage should choose an upper limit for catastrophic coverage ranging from $250,000 to $5 million. This new proposal, if accepted, could make the residents of this state highly vulnerable without having sufficient financial assistance even in some of the worst cases. The revised legislations will transfer the medical costs being incurred by the states to the residents, making it financial tough for them in the eventuality of an accident that they are not responsible for.