Revisions to insurance laws have been approved by the state’s Senate
Lawmakers in Michigan have moved to address issues concerning the state’s auto insurance laws. The state’s Senate has approved revisions to insurance laws that are meant to curb costs associated with medical care for those that have been injured in crashes. These revisions are not entirely popular within the Senate, with opponents suggesting that these revisions could be a detriment to those that need medical care as the result of severe injuries caused by a car crash.
Auto insurance premiums could be reduced by addressing the costs associated with medical care
Auto insurance coverage has become a hot topic among lawmakers in Michigan. Several legislators want to see insurance coverage become more affordable for drivers, but the only way to accomplish this may be to address the medical costs associated with car accidents. Some lawmakers had sought to include mandates to reduce auto insurance rates throughout the state, but these measures were defeated in a Senate vote. By addressing medical costs, however, insurance premiums may decrease over time.
Revisions would restrict payments made by insurance providers
The revisions made to the state’s insurance laws would restrict auto insurance medical payments to an average of what commercial health insurance providers pay. Insurers providing auto coverage had issued complaints that they were being charged more by hospitals and medical care providers than health insurers were, which resulted in higher insurance premiums for drivers. The revisions would also create a new organization that would replace the Michigan Catastrophic Claims Association, which currently funded by an insurance assessment on drivers of $186 a year. This organization is meant to provide coverage for those severely injured in an accident, covering costs that exceed $530,000.
New authority will be established to investigate fraud in the auto insurance sector
The revisions would also establish a regulatory authority that is meant to investigate matters of fraud in the state’s no-fault insurance system. No-fault laws mean that insurers must cover the medical costs of those involved in a vehicular accident, whether or not they are at blame for the accident. Such laws have been credited with a rise in auto insurance fraud, which has also contributed to the rise in insurance premiums throughout the state.