Michigan’s No Fault Auto Insurance Reform Cuts Funding to Car Accident Survivors

Michigan is considered to have the most expensive auto insurance in the country. As such, Michigan lawmakers have been working on auto insurance reform bills since 2019, to reduce the costs of car insurance. With this legislation however, there have been some unfortunate trickle effects on Michigan residents. The new auto insurance reform laws are resulting in a loss of funding of benefits to Michigan car accident survivors. 

The end result is that Michigan residents that need their benefits to continue after a car accident are seeing dramatic cuts to their car accident payouts. At Guy Hurley McNeil serving Rochester Hills, MI, we want you to be covered in every event that may impact your car insurance.

Who is Impacted Under Michigan’s Auto Insurance Reform?

Both beneficiaries and the services they use are being impacted by Michigan’s auto insurance reform. Insurance companies are not. This is how your auto insurance premiums are being reduced, which is what the reform is all about.

To start, Michigan residents that have been injured in a car accident and are receiving benefits for care will see a reduction in reimbursements rates by 45 percent. That means that the centers that serve accident victims will be reimbursed 55 percent of what they were receiving in January 2019. That will be in effect July 1, 2021.

Will There be a Reform to Auto Reform?

Some lawmakers are concerned about the impact this reform is having on Michigan residents and businesses. Some are saying that some rehabilitation services will not be able to survive this loss of funding.

In addition to the burdens now placed on accident victims that paid for their premiums at higher rates years ago, rehabilitation centers are experiencing budget cuts and job losses as a result of this reform.

There are two bills working their way through the Michigan state legislature that could prevent these changes. Those are SB 314 in the Senate and House Bill 4486.

Get a Quote for Auto Insurance

At Guy Hurley McNeil serving Rochester Hills, MI, we want you to be covered for every event that will impact your car insurance. Contact us for a quote and to talk about what this auto reform means for you and your family.