State House Passes No-Fault Reform In Middle Of Night

cars2-25
cars2-25

Under cover of the dead of night, the state House has passed its version of no-fault auto insurance reform. The vote shortly after 2 a.m. overhauls the system and lets drivers completely opt-out of the mandatory unlimited medical coverage for car crashes. The Senate passed a plan earlier in the week, setting up a potential showdown with Democratic Gov. Gretchen Whitmer if a bill reaches her desk. She has vowed a veto of the Senate bill.

The House bill would let drivers forego mandatory unlimited personal injury protection, a requirement only in Michigan. Insurers would have to cut PIP rates, for five years, by between 10% and 100%. That could equal an estimated $120 and $1,200 in savings for someone paying $2,400 annually, according to Republicans’ projections. Democrats oppose the bill, saying it favors the insurance industry and would not guarantee long-term rate relief or ensure the elimination of non-driving factors in setting rates. Republicans say people should not be forced to buy unlimited coverage.