New legislation in Michigan seeking to change the state’s auto insurance laws has found opposition with some of the state’s lawmakers. Michigan Democrats have taken issue with the pending legislation, claiming that it is unfair for some motorists that currently have trouble paying for the insurance coverage they have. The law would remove the cap on medical benefits provided through insurance coverage for those injured in auto accidents as well as broaden the requirement for the level of coverage drivers should have.
Supporters of the legislation argue that it will reduce the cost of auto insurance overall, a claim that the state’s insurance companies have not echoed. Thus far, insurers have only said that rate reductions from the legislation are one of many possibilities. Opponents of the law insist that motorists will face unfair financial stresses due to the uncertainty surrounding whether rates will be higher, lower or stagnant.
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Representative Phil Cavanagh believes that the law is, in fact, for the benefit of insurance companies rather than consumers. Cavanagh fears that motorists will be pressured into choosing policies that provide the least amount of coverage and will end up underinsured if they are the victim of a serious injury.
Opposing lawmakers have yet to draft counterproposals to the law, but would like to see limits put on the mandates imposed by the state government in an effort to make auto insurance more consumer friendly.