AE

Improve our Auto Insurance System

The Michigan Auto No-Fault system in Michigan is broken. Rising numbers of uninsured drivers across the state coupled with escalating cost pressures in the system have led to increasing premiums for many Michiganders. Let's look to other No-Fault state systems to see what makes sense - and model Michigan's system where appropriate. For instance, we are the only No-Fault auto insurance system that mandates you must purchase lifetime, unlimited medical care coverage, regardless of other insurance you may have or if you are a senior citizen eligible for Medicare. Michigan leads by far all other No-Fault states in the costs associated with the medical care provided in the auto policy. The next highest mandated level of required medical coverage is the New York No-Fault system - which mandates $50,000 with other options available. We have no other options in our system here and we should. In addition, we are the only No-Fault insurance system without any type of Fraud Authority that focuses on the abuses and fraud in the system. According to a recent study by the Insurance Information Institute, Michigan has a severe and growing fraud problem in our No-Fault system; the system is under stress due to rising fraud and abuse which ultimately will lead to even higher auto insurance premiums for drivers. It is time for an overall of the No-Fault system, starting with allowing consumers to purchase the amount of medical care coverage they need and can afford.