This past month, Michigan’s No Fault insurance laws were in the cross hairs, with plans introduced to drastically change parts of it introduced by House Speaker Jase Bolger and Sen. John Pappageorge. I’ve put together an informative chart that compares the similarities and big differences between the different proposals (including the earlier plan strongly backed by Gov. Rick Snyder and Rep. Pete Lund).
The plans I compared include:
Michigan’s already “highly profitable” auto insurance industry will get a whole lot richer and more profitable if their plan to dismantle Michigan’s No Fault laws – being pushed by the insurance industry as their plan for No Fault “reform” – becomes law.
And the auto insurance industry is out aggressively trying to sell its plan, hoping to dupe the public into believing that what it’s calling No Fault reform is in the public’s best interests. The most brazen example of this is the insurance industry’s mass mailings to hundreds of thousands of drivers earlier this summer.
The public deserves to know the straight story about how much, if any, they will save on auto insurance expenses if Rep. Pete Lund’s (R-36th) plan for “reforming” or dismantling Michigan’s No Fault auto insurance system becomes law.
Unfortunately, as with so many of the statements made in support of Rep. Lund’s House Bill 4612, Rep. Lund’s recent comments to a TV station make it even harder for the public to know whom or what to believe.
No Fault “reform” House Bill 4612 is a good example of the saying “pigs get fat, hogs get slaughtered” in action. HB 4612 was the most extreme insurance industry wish-list to date. The insurance companies threw moderation to the wind, and tried to make a power play to grab as much as they can while the Republicans, who currently hold all three branches of government in Michigan, are in power.
I write a monthly column for lawyers. Most of my advice columns in Attorney at Law Magazine are for other Michigan lawyers, and include tips and strategies for car accident and truck accident cases. But this month I chose to write about the new No Fault “reform” bill House Bill 4612, frankly because almost no one fully understands just how terrible this would be for accident victims and drivers.
Here’s my column:
On Thursday, the Republican-controlled House Insurance Committee approved HB 4612, which would make sweeping changes to Michigan’s No Fault law and specifically, it’s currently unlimited, lifetime medical benefits for auto accident victims.
The committee approved capping No Fault medical benefits at $1 million and $250,000 for injured motorcyclists.
The committee also passed four amendments to HB 4612. All five amendments passed, making the following changes to the bill:
Hidden fees and assessments in Gov. Rick Snyder’s Michigan No Fault “reform” proposal could cancel out promised savings and may end up causing auto insurance consumers to pay MORE for their No Fault policies.
At his press conference last week, Gov. Snyder promised that, under his proposal for reforming Michigan’s No Fault auto insurance system, auto insurance consumers would save $125 per vehicle in “year one.”