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No-fault insurance reform may not pass savings onto drivers

Michigan makes it relatively easy to work out how to recover from a car accident. The state makes it a requirement to have a form of insurance that makes it irrelevant who caused a crash or how it was caused beyond a possible criminal act. But things are changing with a new law from Lansing.

No-fault insurance reform has been eyed by lawmakers for years and was finalized with the governor's signature last summer. One of the hallmarks of the new legislation is a reduction in the flat fee paid by drivers involved in car accidents.

But some observers are concerned that accident victims may see no savings and perhaps end up paying more. Insurance companies may be looking to lock in savings by raising rates before the law takes effect.

"Insurance companies are raising people's car insurance rates today, in anticipation of the new law," said a Michigan lawyer specializing in the consequences of car accidents.

Drivers are being offered more choices in coverage. Car and truck owners in the Wolverine State will be able to decide if they want unlimited coverage of personal injury in the event of a catastrophic crash. Those who choose to keep this option will see a savings from the Michigan Catastrophic Claims Association (MCCA).

Anyone with questions about the right type of no-fault insurance may consult an attorney on the matter. Legal representation may also be a vital part of a claim in the event of a car accident. A lawyer can help smooth the process of moving on from a crash.

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