Michigan considering changes to No Fault insurance

In an effort to save Michigan residents money the state legislator is considering changes to the no fault insurance which would allow Michigan drivers the option to choose a lower cost, lower coverage insurance and save around 15% off of their premiums.

Unfortunately this is another case of the legislator favoring the will of big business over the good of the people.

First, it should be pointed out that this bill is yet another bill that would have a tiny "implementation" budget attached to the bill making it referendum proof. This forces Michigan residents to take extreme measures to repeal this bill if they don't like it. This is clear government overreach as the legislator limits some of the democratic rights of the people.

Second, this bill "fixes" the symptom not the problem. The reason car insurance costs are increasing has nothing to do with car insurance. It has everything to do with the cost of health care. As health care costs rise so does every form of insurance that covers you in the event of an accident. If you want to have a meaningful impact on car insurance rates you have to fix the problems with the costs of health care.

Additionally, in the end, this bill will not save Michigan residents money. What this will do is force many people to pay for their own health care costs associated with a car accident. Those who cannot pay will either go bankrupt or be put on the tax payer funded medicare system. This puts Michigan residents in the position of paying a little more now or even more later. The only savings here is for the insurance industry which is why they are fighting so hard for this bill.

Lastly, when asked about how this will affect people who have catastrophic injuries due to a car accident, a spokesman for the insurance industry basically said that the number of the catastrophic injuries from car accidents is very small. Odd that these incidents are so rare and insignificant yet the money saved by the insurance industry for not having to cover these events offers a big savings to consumers taht is worth back dooring democracy for.

Unless something is done about the costs of health care someone will pay for the 15% savings that this bill will offer. The insurance industry just doesn't want it to be them.