The auto insurance system in Michigan is quite unique and this is a privilege that they have enjoyed for quite some time now. However, proposals have been made to change the auto insurance system in Michigan and that does not seem to have gone down too well with some people. This issue is likely to be debated in the Michigan Legislature.
Michigan is the only state that mandates unlimited coverage for individuals who suffer catastrophic injuries in accidents. This is the only state in the US where they follow this system. Now, proposals are being made to change this system and offer auto insurance policies that are less expensive in exchange for limited Personal Injury Protection Coverage.
Some people are in support of bringing about this change. This includes auto insurance providers too and they state that this will prove to be helpful to motorists as they can opt out of the expensive coverage that they cannot afford or the type of coverage that they may not want. Auto insurance carriers are also looking forward to getting some relief with the help of these proposed changes, because the whole system seems to have turned out to be extremely expensive and is also threatening their financial systems as well.
Sen. Joe Hune who is the chairman of Senate Insurance Committee and a Republican from the Hamburg Township, Livingston County has also stated that the entire system seems to have become increasingly expensive due to the high medical costs. He also feels that this system is unsustainable and is likely to collapse anytime soon.
However, there are opponents to this proposed legislation and they claim that this would prove to be a threat to the financial stability of the present no-fault system in the state. Their claim is that motorists who opt for lesser coverage could actually end up with lesser coverage and this will only get them into some serious financial trouble in the event of a catastrophic accident.
The whole coalition that is opposed to these changes includes hospitals, health groups, trial lawyers, and other organizations as well. The coalition seems to be trying its level best to lobby with auto insurance companies and business groups such as the Michigan Chamber of Commerce that want an alteration in the auto insurance system. The proposed legislation would bring about major changes to the coverage as per state law, for those who suffer catastrophic injuries in a motor vehicle accident.
