What’s On The Horizon For Auto Insurance Changes In Michigan For 2014?
As automobile insurance continues to remain high, everyone ultimately wants to know how the auto no-fault reform would make Michigan automobile insurance affordable and simple. To help understand the current state of debates, here are 5 points you should know about the most recent auto insurance reform:
- $10-million Cap: Currently, Michigan residents have been granted an unlimited amount of benefits for those that have been injured in auto-related accidents. This cap would not affect any existing claims, and officials have stated they do not anticipate anyone exceeding this budget cap, based on existing data from current claims. It has been suggested that anyone who would exceed the cap, would then tap into his or her own personal medical insurance.
- 10% Savings on Automobile Insurance: This policy would only be mandated for the first two years, if the reform were put into place. Michigan is one of the most expensive states when it comes to auto insurance. Officials hope that this will relieve some of the financial burden on families across the state for a brief period of time.
- Low-cost Insurance Plans: Michigan is the only state that currently requires every driver to purchase unlimited medical coverage with their automobile insurance. The newest reform offers an opportunity for low-income residents to pay for coverage with a cap at $50,000 on medical expenses.
- Quick Payment Claims: Medical contributors would be limited to charging only 125% of the current rate for any workers compensation claims, and granting them 30 days to pay the claim. If they take any more time to pay the claim, rates can be expected to go up, ultimately resulting in insurers paying more quickly to avoid higher costs.
- Democrats Oppose and Republicans Push: Several automobile insurance reforms have gone through the House of Representatives and have failed for a multitude of reasons. Most of the debate has been due to the financial toll that new claims would face, where Democrats feel Michigan’s generosity towards auto-no fault, and currently policy, should be a platform of change throughout the country. Republicans argue that the high cost of automobile insurance in Michigan will only continue to rise, and ultimately be near impossible for anyone to afford. Both sides continue to find a compromise, but not without great struggle.
Call E & Y Insurance Agency, LLC At (248) 362-1313 For More Expert Advice And Insider Information
Remember to contact your E & Y Insurance Agency to see how this reform would affect automobile insurance coverage for you.