No-fault car insurance discussed at Constantine Rotary meeting
CONSTANTINE — Greg Hoover of State Farm Insurance talked about the latest proposal to overhaul Michigan’s no-fault auto insurance system, and the Michigan Catastrophic Claims Association (MCCA) at a Tuesday, Oct. 10 meeting of Constantine Rotary.
The no-fault system has been around for more than 40 years. It is called a “no-fault” system because it allows people injured in auto accidents to access insurance benefits without first having to prove the other driver was at fault for the crash.
“Michigan drivers are guaranteed unlimited lifetime medical benefit,” Hoover said.
“Legislative leaders in recent sessions have proposed changes to the state’s no-fault system with the intent of lowering premiums. None have passed into law.”
A broad coalition of groups met in Lansing on Sept. 26 to discuss getting relief from the nation’s highest automobile insurance rates. If the law passes, it would cut premium rates 20-50 percent in three tiers: a 20 percent cut for average drivers with comprehensive coverage; a 35 percent cut for a retiree with full lifetime health care; and a 50 percent cut for drivers with no collision or theft coverage.
It would allow drivers to choose the level of personal injury coverage: $250,000, $500,000 or continue with the unlimited lifetime benefits that all Michigan drivers have now. It would require insurers to roll back rates an average of 20 percent on comprehensive policies and up to 50 percent on basic policies.
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