In 1973, Michigan started its no-fault auto insurance system. The idea behind the system was to lower the costs for consumers and to get doctors their payments faster. This was because victims of accidents didn't need to file a lawsuit against the other driver in order to get compensation for injuries. With no-fault insurance, drivers would simply use their own insurance company to submit claims, no matter who was at fault in the accident.
The state legislature has tried to make several changes to no-fault insurance, but hasn't been very successful. However, medical providers have maximum fees that they can charge. Also, there are different levels of coverage available instead of just unlimited.
One state senator believes that the reason why other bills to change no-fault insurance have failed is because there have been too many changes tried at once. He believes that addressing one specific issue would be better. He also said that people want to have full no-fault coverage, but they don't like having to pay so much for it. The House Speaker said that the high reimbursement rates are what need to be tackled next.
Another state senator wants to keep unlimited, no-fault benefits. However, he introduced legislation that would allow insurers to only base rates on the driver's history of insurance claims, potential repair costs and civil infractions. Currently, insurance companies can base their rates on a wide range of subjective criteria. That, he said, leads to unfair outcomes.
If you are injured in an accident through no fault of your own, an experienced attorney can help you understand how no-fault insurance will affect your case.
Source: Detroit Free Press, "How Michigan got — and kept — no-fault auto insurance," JC Reindl, accessed Aug. 18, 2017