Southeast Michigan lawmakers unveil new plan to fix states auto insurance system

first_img State Reps. Jason Sheppard of Temperance, Joe Bellino of Monroe and Bronna Kahle of Adrian today unveiled legislation repealing Michigan’s no-fault auto insurance system to bring significant relief to drivers paying the nation’s most expensive insurance premiums.The legislation continues benefits for everyone already receiving lifetime health care after a catastrophic traffic accident. The eight-bill package eliminates the no-fault system and moves Michigan to a full-tort system similar to other states such as Ohio.“We need to ask ourselves this – should Michigan continue to do nothing about having the highest insurance rates in the nation? Is that a logical way forward?” Sheppard said. “The answers are obvious to drivers across the state facing severe financial stress. We’ve got to do something to fix this broken system and lower rates for all drivers.”The plan still mandates that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering.The legislation also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association (MCCA) until it is no longer needed. The MCCA system will be closed to new entrants.“Auto insurance rates are so high, they are draining our neighbors’ bank accounts,” Bellino said. “As legislators, we cannot continue to let this happen. Our current rates are an unnecessary burden for families across the state.”Colorado abandoned its no-fault system in 2003. According to a 2008 governor’s study, the average car insurance premium in the state decreased 35 percent since the state moved to a tort auto insurance system. Michigan drivers could see greater savings by parting ways with its no-fault system, which is the only one in the nation mandating unlimited medical coverage. Florida, one of the 12 states operating with a no-fault system, is also debating repeal.“Our auto insurance is too expensive,” Kahle said. “Michigan’s unique no-fault system has led to the highest auto rates in the country. The hard-working families and seniors in Lenawee County deserve relief.”Sheppard noted that repealing Michigan’s no-fault system and replacing it with a tort system will draw more insurance companies to the state, which will in turn create more competition to even further drive down insurance rates.The bill package, House Bills 5517-23, will be formally read into the record next week. Categories: Kahle News 01Feb Southeast Michigan lawmakers unveil new plan to fix state’s auto insurance systemlast_img

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