No-fault insurance changes on fast track in Michigan

No-fault insurance reform couldn't get traction last year, now speeding through both chambers

DETROIT – Major changes to Michigan's no-fault insurance law are being fast tracked through Lansing. That means an ad war is about to heat up.

On one side you have the insurance industry which said this cracks down on fraud and will reduce premiums. On the other is the medical industry and those who have suffered catastrophic injures who say this does nothing but diminish care.

No-fault insurance reform couldn't get traction last year, but now it's speeding through both chambers. The insurance industry said this will crack down on fraud, and a new provision in the bill demands you see a $100 reduction in your policy over the course of two years.

"We have 7 million vehicles on the road, $100 per vehicle will save $1.4 billion to our families over the next two years in Michigan," said Rep. Tom Barrett.

But there's no provision in place that says what happens after the two-year period. In other words, there's no guarantees those savings will continue.

Meanwhile those who have suffered catastrophic injury are scared their level of care will decline.

"I'm worried about the quality of care I have," said Jill Dobies. "I have been very active, very healthy since my injuries and the majority of that is because of the current auto no-fault I have."

A car accident when she was 8 caused Jill's severe spinal injury. Her concern is shared by doctors and now the hospital industry, which is trying to put the brakes on the no-fault proposal.

"I wish I wasn't hurt. I wish I didn't get into a car accident. I wish I didn't have to deal with this," Dobies said. "I would be happy to go along and pay my car insurance and never have to use it."


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