The Michigan legislature is feverishly working to banish the no-fault law currently on the books. Banishing this law could cost people in Michigan a significant amount of money. This is a hot topic for Michigan residents dealing with accident laws concerning injured drivers. The current no-fault law allows accident victims, who suffer from serious injuries, to collect medical coverage and other compensation throughout their lifetime if necessary.
No-fault coverage is mandatory in the state of Michigan. If the no-fault law is reversed, the effects can be devastating for the seriously injured that would be left with no other options. If the no-fault law is dismembered, the people relying on medical coverage from such claims would have to turn to Medicaid. If that occurs, the average taxpayer will have to pay for it. This could mean much higher taxes for people who are already overburdened.
The state made the decision to bring the change to the floor because insurance rates are skyrocketing. The Michigan Catastrophic Claims Association may enter into insolvency because so many claims have been made. Insurance companies cannot make money with the current system that requires no-fault insurance. There is the possibility that this could cause a loss for insurance companies as well.
There is no cap on the amount of money that an insured person can collect under the no-fault law. Drivers pay approximately $140 per year for this portion of vehicle insurance. Most drivers have no problem paying the extra money every year. The coverage is extra assurance that a horrible accident will not bankrupt them. They will never have to worry about the extremely high medical costs that could last a lifetime.
Drivers do not wake up in the morning thinking they will be involved in a car accident. They assume that all drivers on the road are safe drivers. Unfortunately, that is not the reality. The truth is, there are bad drivers on the road. Every person who gets behind the wheel is in danger of becoming seriously injured in a car accident. If a car accident causes long-term disability, no-fault insurance covers job loss as well as the medical bills. The legislation was brought to the attention of lawmakers by the auto insurance industry. The insurance companies do not have the best interest of the consumers at heart. They are seeking to have the law reversed because it means more money in their pockets.