Legislators Seek to Put the Brakes on No-Fault Insurance

Liz Gullett

Mar 22, 2019

Michigan’s no-fault auto insurance system would be repealed under an eight-bill package introduced in the House this week. The plan continues the mandate that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. By moving to a tort system, accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering. The bill sponsors believe their proposal will bring down auto insurance rates in the state, which are the highest in the nation. Additionally, they believe the reforms will draw more insurance companies to the state, another method to reduce costs due to the increase in competition.

The bill package has been referred to the House Insurance Committee.

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