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Bills To Amend No Fault Insurance Laws Goes To House of Representatives


LANSING, MI  (WKZO) --  A package of bills to alter the state’s no-fault insurance system has cleared a state house committee on a straight party line vote, but heads for an uncertain future on the floor of the house.  

There is no doubt that Michigan motorists pay more for auto insurance than most other states, but its also true that between no-fault and the state’s catastrophic care fund with its unlimited lifetime payout, that it also has the best coverage in the nation.

Committee Chair and sponsor Pete Lund says it will still have that, even with the Million dollar cap on coverage.  He says it would lower payments by about $125 per year.

 But opponents say they could enact some of the reforms in the package, and improve the current popular system enough for those kinds of savings. They say this so-called reform would just create a windfall for Insurance Firms while limiting coverage.

The Governor backs the reforms, but as we have seen with his road funding initiative and other measures, that’s been no guarantee for success this year.