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Auto No-Fault Reform Legislation Announced

Oct 20, 2017

This week, a bipartisan coalition of Michigan legislators introduced a package of bills aimed at reforming the state's auto insurance system and lowering costs for Michigan residents. The "Fair and Affordable No Fault Reform" plan contains fifteen bills. "This is the second major proposal that has been announced reforming the state's current no-fault auto insurance system. Earlier in the fall, Speaker Tom Leonard and Detroit Mayor Mike Duggan announced their reform proposal, showing the importance of the issue to Michigan residents," said Matt Sowash of MLC.  

The proposal is working to take on the high cost of auto insurance by what the bill sponsors believe is the causes of increased costs for Michigan drivers: unprotected fraud, high medical reimbursements, system inefficiencies, high litigation rates, and a lack of consumer protection. The reforms included in the Fair and Affordable No Fault Reform package will reduce drivers' auto insurance rates without reducing their coverage and benefits.

Prior to introducing the proposal, the bipartisan coalition spent several months gathering input from medical professionals, insurance providers, accident victims, and other key stakeholders. The bills have been referred to the House Insurance Committee for consideration.

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