Michigan No-Fault Changes: Less Coverage for Motorists — But No Drop in Insurance Rates?

Apr 14, 2022 | Car accident, General, General Interest, Insurance Issues, Personal Injury Case

It should come as no surprise that the hurriedly cobbled-together and poorly thought-out No-Fault Insurance “reform” law has not given Michigan drivers the supposed big reductions in their car insurance rates that were promised by our government leaders and the insurance companies; rate reductions have been slow in coming, to put it mildly. A recent article by the Detroit Free Press examines the law’s impact on many vehicle owners since it went into effect almost two years ago, and what the journalist finds out is not great news for Michigan motorists.

You can read the full article at the Detroit Free Press, and it has been republished here: https://businessla.000webhostapp.com/2022/04/many-michigan-drivers-drop-unlimited-no-fault-insurance-yet-rates-slow-to-fall-detroit-free-press

Snips from the article:

More Michigan drivers are dropping unlimited medical coverage in their no-fault insurance, even as many still wait to see meaningful savings on their premiums since the state’s auto insurance overhaul took effect nearly two years ago….

Insurers ‘gouging’

Douglas Heller, a nationally known consumer advocate and a consultant for the Coalition Protecting Auto No-Fault, recently chided auto insurers in Michigan for not significantly lowering premiums since the 2019 overhaul.

His critique focused on Citizens Insurance because the company does significant business in Michigan and its latest rate filings from the fall are relatively fresh. 

On average, Citizens customers are paying $90 more for insurance than before the overhaul was passed in 2019, Heller found, and the cost of its PIP benefits has barely decreased while that of other coverages — bodily injury, collision, comprehensive, uninsured motorist — all increased.

“The reform didn’t do what it said it would do,” Heller said. 

“I think (insurers) are gouging Michigan drivers by taking advantage of the fact that the regulatory infrastructure is not there to make sure that rates meet the actual costs the insurance companies incur and reflect a fair pricing for customers,” he said.

“I think that’s what’s going on. I think that’s been the problem from the beginning, and I think that that’s why the 2019 law was doomed to fail, because it did not meaningfully address the accountability questions in the market.”

The attorneys at Atkinson Petruska Kozma Hart & Couture encourage most of our clients to keep their unlimited Personal Injury Protection coverage and to not be “suckered in” to opting for lesser coverage amounts. See our website articles and videos on this topic, and our concern with the way the law’s cuts in the care of people who have been catastrophically injured has been devastating.




Know the Law: Michigan car crash victims could lose care under new rules

If you have  any questions about car insurance or the Michigan No-Fault law, be sure to contact us. We have been specializing in No-Fault law ever since it was created in Michigan in 1973. No one knows Michigan No-Fault insurance or car accident law better than the attorneys at Atkinson Petruska Kozma Hart & Couture, PC. 

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