Tagged: auto insurance

Some members of the legislature are once again proposing changes to no-fault auto insurance in Michigan. They say it will save auto owners money. Opponents say the plan is good for insurance companies, but not for accident victims.

Everybody seems to agree auto insurance in Michigan costs too much.

Governor Rick Snyder and the chairs of the Senate and House insurance committees explained the latest plan to reduce the cost.

“In this legislation it would specify that premium costs would come down by $125 per vehicle in the first year and then hopefully because of competition and other things could even see that increase in later years,” Governor Snyder said.

That one-year guarantee of savings would come because of a reduction in the Personal Injury Protection part of auto insurance.

A proposed reform to Michigan’s no-fault auto insurance is circulating in the Legislature.

Among other things, it would cap benefits for people who suffer severe injuries in auto accidents at $1 million.

Oakland County Executive L. Brooks Patterson has come out as a strong opponent to this legislation.

Patterson is still recovering from a serious auto accident he had last summer, and his driver, James Cram of Owosso, was paralyzed from the neck down.

In this interview with Jennifer White, Patterson talks about his opposition to the proposed legislation and his recovery.

You can listen to the full interview above.

Patterson wanted to be clear that he and his driver were working at the time of their accident.

Their medical bills are covered by worker's compensation, so Patterson says his opposition to changes to Michigan's no-fault insurance laws are not for his own benefit.

"Did the accident make me more aware and more sensitized to the plight of people who suffer from catastrophic injuries? Absolutely," he said.

Last week, Governor Snyder announced plans to introduce legislation that, if passed, would essentially mean that insurance companies and the state would no longer provide virtually unlimited benefits to those injured in catastrophic car accidents.

Currently, victims whose health care costs exceed half a million dollars have their care covered by the Michigan Catastrophic Claims Association. The governor would cap those benefits at a million dollars. The next day, his proposal was attacked by an opponent who called it, “an embarrassment to the Republican party.”

“The governor misses the big picture,” he added. What is most interesting about this is that the man attacking the governor‘s idea is not a liberal Democrat or a leader of a victim‘s rights group, but one of the state‘s most prominent conservative Republicans, L. Brooks Patterson, the longtime czar of Oakland County.

Brooks knows what he is talking about. Last August, he and his driver were T-boned in a car accident that very nearly took their lives. Patterson was in a coma for days, suffered multiple broken bones and was in the hospital for nearly two months.

This week in review, Rina Miller and Jack Lessenberry discuss the possible plan to lower auto insurance rates in the state, a bill to require drug tests for welfare recipients, and the arrests made at the University of Michigan over immigration protests.

There was a lot of criticism of President Obama for devoting so much time to his health care plan during his first year and a half in office. Some felt he should have also tried to get through a massive job creation plan, or a program to rebuild the nation’s infrastructure. However, he did succeed at getting what we now call “Obamacare” passed, and it is now transforming medical coverage.

Snyder wants to lower auto insurance rates

Governor Rick Snyder is asking lawmakers to make changes to Michigan's no-fault auto insurance system. The Governor says Michigan has the highest insurance rates in the Midwest and have the eighth highest rate in the county.

"Right now, people critically injured in an auto accident can receive unlimited lifetime medical benefits. Under a plan announced yesterday, that amount would be capped at $1 million dollars," Jake Neher reports.

Michigan House approves bill against indefinite detention

"The Michigan House has approved legislation that would prohibit state and local law enforcement officials from helping the federal government indefinitely detain American citizens without charges," the Associated Press reports.

Weather update

More flooding and a return to wintry weather in places are being seen as spring storms prompt evacuations in parts of Michigan. More rain is expected today. We might even get some snow this afternoon in West, Mid Michigan and Flint. The Grand River in Grand Rapids is expected to crest on Sunday, just inches below the 100-year flood level.

Depending on where you live in the state, your auto insurance rates could be outrageously high.

During the last session of the Michigan Legislature, there was an attempt to change the state’s auto no-fault insurance with claims that it would lower rates.

This is something the auto insurance agencies keep lobbying for, and Governor Rick Snyder said in his State of the State address we need to keep costs down.

But there’s little evidence that your insurance rates would go down that much, or at all, by these limits.

That’s because the real reason auto insurance is so high in some areas is theft, fraud, and uninsured motorists.

The part of no-fault that guarantees someone severely hurt will get the reasonable care they need is just a fraction of the cost, and some would argue the best bargain in the nation.

Joining me now is a lawyer who, we should point out, fights the insurance companies over claims on a regular basis.

Steven Gursten is with the law firm Michigan Auto Law.

Most of us find auto insurance coverage a little confusing at best, so we started off by explaining what catastrophic coverage is, and what the Michigan Catastrophic Claims Association is.

Listen to the full interview above.