Mich. Passes Pair of No-Fault Reform Bills

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May 14, 2019—The Republican-controlled state Legislature in Michigan last week passed two similar bills that would overhaul the state's no-fault car insurance system, according to The Detroit Free Press.

Both the House and Senate bills would give Michigan motorists a first-ever choice in how much medical benefits they wish to buy with their auto insurance.

Supporters of the bill say it will lower auto insurance premiums. Opponents say the bills are giveaways to insurance companies and would wreck the no-fault safety net for accident victims as well as offer no guaranteed long-term savings on insurance rates. 

Democratic Gov. Gretchen Whitmer has vowed to veto the bills in their current form. The existing no-fault system requires that all insurance plans have potentially unlimited lifetime medical benefits, known as personal injury protection, or PIP. Michigan is the only state with such a mandate, according to the report.

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