no fault auto insurance

A federal lawsuit filed Thursday is challenging Michigan’s no-fault auto insurance law.

Detroit Mayor Mike Duggan is among the plaintiffs suing the state Insurance agency. The other plaintiffs represent a wide mix of people from different parts of the state.

Michigan's mandatory fee to cover unlimited medical benefits for injured drivers is rising to $192 a year.

A new report says Michigan’s auto insurance rates are still the highest in the nation.

The ZEBRA is a company that tracks auto insurance rates across the country.

Zebra’s Alyssa Connelly says the average annual auto premium in Michigan is about $2600, which is nearly twice the national average.  According to the report, North Carolina motorists pay the lowest annual premiums ($865). 

The 2018 State of Auto Insurance Report finds motorists in Detroit pay $5,414, on average.

A plan to overhaul the state’s auto insurance system failed late Thursday night.

The bill would have gotten rid of the requirement that everyone have unlimited personal injury coverage. Instead, drivers would have been able to choose from three levels of coverage.

Speaker of the House Tom Leonard (R-DeWitt) blamed Democrats for the failure. Leonard said he was always clear that he would need 10 to 15 Democrats for the bill to pass.

A fight in Lansing over car insurance reform is once again pitting concerns over affordability against concerns about coverage for catastrophic car crashes.

At least one Democratic state representative from Detroit is supportive of a legislative plan that would get rid of the state requirement that all drivers purchase unlimited personal injury protection with their auto insurance.

The state legislature held a marathon committee hearing on a bill to overhaul Michigan’s auto insurance law Tuesday. The committee heard ideas for potential changes to the bill.

One idea is to prevent insurance companies from using credit scores to influence rates.

Mayor Mike Duggan had a major hand in crafting the bill the committee discussed. He said he’d like to see changes to the bill; but he said the focus needs to be on passing immediate rate relief.

Anyone who drives in Michigan is no stranger to the high cost of auto insurance in the state.

A study from gobankingrates.com finds the high cost of insurance contributes to Michigan being the most expensive state to own a car.

According to the study, it costs nearly $5,000 annually to own and maintain a vehicle in Michigan, with more than half that cost coming in the form of auto insurance premiums.

A group of insurance companies that sets a mandatory car insurance fee does not have to say how it comes up with that fee. That decision came today from the Michigan Court of Appeals.

The Michigan Catastrophic Claims Association was created by an act of the Legislature, but it’s run by insurance companies. This year, the MCCA collects $160 on every insured vehicle. The money is used to pay the most-expensive medical bills of victims of car crashes.

Michigan's hospitals say they could be forced to make major cuts to their trauma centers if bills to overhaul the state's no-fault auto insurance law go through.

All Michigan drivers are required to buy no-fault auto insurance. A portion of premiums goes into a fund for unlimited medical care for catastrophic crash victims.

The Michigan Catastrophic Claims Association says it will lower the fee that gets tacked onto all drivers' insurance policies. 

Starting this July, the fee will drop from $186 to $150 per car annually. The announcement comes after some lawyers complained earlier this month that the fee was too high.

Some lawyers say the Michigan Catastrophic Claims Association should lower the annual fee for Personal Injury Protection in the coming year.

According to the MCCA, "all auto insurance companies operating in Michigan are required to pay the assessment to the MCCA to cover the cost of Personal Injury Protection (PIP) benefits guaranteed under Michigan’s no-fault insurance law. PIP coverage is mandatory and provides for the payment of unlimited, lifetime medical auto insurance benefits.

At the state Capitol, House Speaker Jase Bolger, R-Marshall, says he still hopes to get an overhaul of Michigan’s no-fault auto insurance law through the Legislature this year.  He rolled out a new plan to end Michigan’s unlimited lifetime medical benefits coupled with the promise of a rate reduction.

“We do seek to ensure more drivers, make our auto insurance more affordable,” said Bolger at a news conference to announce the proposal.

It could be a busy December for state lawmakers after they return from their Thanksgiving break.

Here are some of the issues that could come up for debate before the end of the year.

Paying for the Medicaid expansion delay – In a procedural vote earlier this year, state lawmakers delayed by about two months the implementation of Michigan’s Medicaid expansion law. In doing so, they created a hole in the budget of more than $70 million.

Legislative leaders say passing a bill to fill that hole is one of their top priorities in the coming weeks.

The Michigan Supreme Court has set some new limits on expenses that can be claimed under auto no-fault insurance coverage by people injured in car crashes. 

Kenneth Admire used handicapped-accessible vans since a 1987 auto accident. Three times before, his insurance company paid the entire cost of the modified vehicles.

This last time, though, the company said it would pay for the modifications, but Admire has to buy the van.

Detroit Democrats propose auto insurance reform

Democratic state lawmakers from Detroit are proposing their own strategy to overhaul auto insurance in Michigan.

“The Democrats oppose Governor Snyder’s plan to cap insurance payouts for catastrophic injuries sustained in car accidents...Detroit caucus members say they’ll propose other measures, like requiring insurance companies to justify rate increases,” Michigan Radio’s Sarah Cwiek reports.

Flint’s EM recommends income tax increase

Flint’s emergency manager says his budget plan for the next year is balanced, but he warns that without new tax revenue sources, the city will again fall into debt.

“[Emergency Manager Ed] Kurtz says the loss of grant funding and declining property tax revenues will leave the city millions of dollars in the hole each year through 2018. Kurtz says Flint needs to raise its city income tax rate. Otherwise, Kurtz says Flint will face another round of budget cuts, including to police and fire,” according to Michigan Radio’s Steve Carmody.

Salaries for state officials expected to stay the same

“A state salary commission is expected to recommend no salary hikes for the governor or legislators. Governor Rick Snyder and legislative leaders sent word they’re not seeking bigger paychecks. There could be a battle over judges’ salaries, though, when the State Officers Compensation Commission meets today. Some judges have asked for a bump after a 10-year salary freeze,” Rick Pluta reports.