Many people in the state are pushing to have this required element of the policy removed due to cost.
The Insurance Institute of Michigan, insurers, other people in the industry, and the residents of the state are now recognizing that the auto insurance in the state requires some changes in order to keep its rapidly rising costs under control.
The no-fault portion of the required coverage in the state is leading the cost of car ownership skyward.
Now many are starting to feel that this auto insurance system is ready for some considerable change. According to Peter Kuhnmuench, the executive director of the Insurance Institute of Michigan “We think we’ve got one of the best systems in the country, but it’s in need of some repair to make sure it’s viable for the next 38 years.”
The proposal of the institute is to change the no fault auto insurance system on many levels.
It has suggested that the no fault auto insurance system be changed in areas such s the medical fee schedules, as well as the benefits caps. These alterations would give consumers the opportunity to change their coverage level if they wanted to. Kuhnmuench went on to explain that “We think these reforms will benefit everyone across the board, particularly those that find it hard to pay for auto insurance today.”
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Those opposed to changing the auto insurance program in Michigan have argued that the state would be better off concentrating on the systems that have already been established. For instance, John Truscott, a spokesperson for the Coalition Protecting Auto No-Fault, said that this coverage is the law. “You have to be insured, but a lot of people are breaking the law.”
Truscott went on to say that his organization feels that time and resources would be better spent for cost reductions by enforcing what is already in place at the moment, and to make efforts to stop those who are breaking the auto insurance law and then who are causing accidents. The group feels that it is this behavior that is keeping the rates as high as they are, and not the system itself.