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Lawmakers look to change catastrophic auto coverage, again

two cars in a rear ending accident
Steve Carmody
Michigan Radio
An accident in Ann Arbor.

Controversial legislation to scrap unlimited, lifetime medical coverage for car crash victims is back up for consideration in Lansing.

Proponents of the current system say the law makes sure victims are taken care of. But Republicans have been trying for decades to scale back the state’s unlimited medical coverage for people injured in car crashes.  

The proposed legislation would let consumers pick their levels of coverage.

Speaker of the House Tom Leonard says auto no-fault overhaul is one of his party’s biggest priorities.

“This is an issue, one of the biggest issues facing our state,” he says.

Republican Representative Jason Sheppard introduced legislation on the issue. It would, among other things, let consumers pick their levels of coverage. Right now, the law requires that all medical costs for catastrophic car crash injuries are covered for a lifetime.

“I think it’s a good starting point for us to start talking about. Because, we pick our levels of insurance in every aspect of our life. Homeowners to our health insurance so why not do it with our auto insurance?” he says.

The legislation would also create an auto insurance fraud and theft prevention authority.

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