Michigan Chamber: Auto Insurance Reforms Needed

The Michigan Chamber of Commerce says a study shows that significant reforms are needed to protect Michigan’s no-fault automobile insurance system and keep premiums competitive.

The Chamber-sponsored study identified four primary recommendations for reform:

• Place upper limits on no-fault benefits;
• Allow consumers to choose the level of benefits they receive;
• Enact cost controls for medical and long-term care through a fee schedule similar to that used for systems such as worker’s compensation; and
• Introduce a coordinated response to claims fraud.

“Michigan’s current auto no-fault system is by far the most generous of all 50 states. This doesn’t translate into good news for Michigan citizens or job providers purchasing insurance for commercial fleets of vehicles,” said Michigan Chamber President and CEO Rich Studley.

Premiums in Michigan rose by 30.5 percent over the last decade, compared to 13.7 percent nationwide.

One of the key reforms the study explored was providing drivers with coverage choice. Drivers currently pay among the highest auto insurance premiums in the nation in exchange for unlimited medical coverage they may neither want nor need, according to the Chamber.

Topics Auto Michigan