Auto Insurance Changes countered by Michigan Egalitarians
Michigan democrats in the Michigan House noted their opposition in ratifying Michigan's
auto insurance laws which includes a measure seeking to curtail the unique
requirements imposed by the state to cover people devastated by accidents.
As dated, Michigan is the only state that requires uncapped medical benefit coverage
for people facing with very serious auto accidents. One major premise included in the
proposed amendment in the law which could possibly be considered soon in the
GOP-led House is the option given to motorists to choose among $500,000, $1 million
or 45 million as coverage for personal injury protection.
Supporters of the ratification say that this will lead to a less expensive insurance that
motorists would otherwise have to purchase. However, egalitarians of Michigan noted
that there is no evident decrease in the premiums paid by insurers. They say that
motorists choosing a lesser coverage could wind up which will lead to underinsured if a
very tragic situation happens which then leads to financial trouble.
Phil Cavanagh, D-Redford representative noted that the modification would -pad- the
bottom lines of insurance companies at the expense of consumer protection. Most of
the support comes from Republicans saying that it would benefit the motorists since
they will be offered with a choice and possibly lower premiums. They added that the
existing law has driven up insurance costs which may then contribute to the number of
people traveling without insurances.
The current law requires that customary auto insurance policies handle coverage up to
$500,000 in medical cost. All insured motorists are then assessed a fee to cover some
of the worse cases reimbursed through the Michigan Catastrophic Claims Association.
The association was created way back in the late 1970s which now cover medical bills
for almost 12, 800 accident victims in Michigan. Those who contradict the proposed
changes said that limits should be imposed on in-home assistance for accident victims
already insured in the MCCA system.
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