Michigan Car Insurance Reform Scaring Some Michiganders

I lived in Nevada and Florida before I moved back to Michigan and my car insurance was pretty reasonable.  When I moved back to Michigan my rate more than doubled. I had a good driving record, no tickets, no accidents.  I told my agent this was insane, and he said Michigan is the most expensive state in the country for car insurance  Why? because if you're ever injured in a crash, you would be taken care of for life.

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Some Michiganders Are Worried

What is happening now is many, many people in Michigan who suffered really bad injuries in car crashes, and who depend on care from the state's no-fault auto law, are scared that they will soon lose access to care once a sub-section of the act goes into effect in July.

So. here is the scoop, in July of 2020, the first leg of the reform started, folks with a driver's license in Michigan had to have unlimited Personal Injury Protection (PIP). That is what according to my agent made Michigan the most expensive state in the country for car insurance, but it had that guarantee that if you were ever hurt in an accident, you would be looked after.

If you have a seriously injured person, who depends upon and receives certain health services that are not compensable under the federal Medicare law, then the provider of those services will have reimbursement slashed by 45%,” explained West Michigan attorney George Sinas, of Sinas Dramis Law.

 

The Intention Was Good

If you remember Governor Gretchen Whitmer signed the No-Fault Auto Reform bill into law back in January of 2019. She was trying to help by helping Michiganders get lower insurance rates in the state.