Snyder Proposing Major Change to No-Fault Auto Insurance
MARQUETTE, MI – (Great Lakes Radio News) – Governor Rick Snyder today is proposing major reform in Michigan’s no-fault auto insurance law.
His proposal calls for a repeal of Michigan’s law that allows for unlimited medical coverage in injuries related to auto crashes. The Governor called for reform of the law in his State-of-the-State address.
Under the proposal being pushed by the Governor, medical claims would be capped at $1 million, and at that point Medicaid would pick up the tab. Car insurance premiums would go down by at least $125 per year less. Also, a new organization would step in to eventually take the place of the Michigan Catastrophic Claims Association, which would cover up $1 million more for medical expenses for car crashes.
Advocates for changing the current law note a recent study which says Michigan has the second highest average car insurance premiums in the nation.
Earlier this year, Governor Snyder signed an executive order creating the Department of Insurance and Financial Services to look for a solution to the high costs of insurance.
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