Personal Injury Protection

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The Michigan House of Representatives is expected to bring HB 4936 to the floor for a vote soon.

That legislation would significantly change Michigan’s auto no-fault Personal Injury Protection (PIP) coverage.

Here is a quick overview of what we have now, the proposed changes, and the potential consequences of those changes.

1. What we have now

There’s some confusion about changing no-fault. It’s not the “no-fault” part that would change. It’s the Personal Injury Protection portion of auto insurance that would change.

A coalition of rehabilitation centers and people injured in car accidents is trying to stop proposed changes to Michigan’s no-fault auto insurance benefits.

The Coalition Protecting Auto No-Fault is hosting town hall meetings across the state to educate people about the proposed changes. They’re also inviting people impacted by a major car accident to share their stories.

Michigan legislators are considering changing insurance benefits for people badly injured in auto accidents.  The sponsors of the legislation say it will lower the price of auto insurance.  Some analysts say it will mean people who are severely hurt won’t get the care they need and argue in the end won’t save much money at all.

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Michigan legislators are looking at changing the state’s mandatory auto no-fault insurance.  But some of the legislators say the information they need from insurance companies to make an informed decision has not been available to them.  Regulators say legislators and the public wouldn’t be able to understand the information even if it were made available.

Update 3:35 p.m.

A state House committee has approved major changes to Michigan’s no-fault auto insurance.

The legislation would cap medical fees and restrict the kind of care people who are badly hurt in car accidents could get.

As it is now, if someone is catastrophically injured in a car accident, no-fault Personal Injury Protection pays for all necessary medical and rehabilitation expenses.

It’s unlimited, lifetime benefits if necessary.

This new bill would limit medical fees, and it would give motorists the choice to purchase $500,000, $1 million, or $5 million worth of coverage.

After that, you’re on your own.

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Tomorrow (TUES.) the Michigan legislature holds the first hearings on bills that would change the state’s no-fault auto insurance.  Legislators say auto insurance is too high and they want to allow people to buy less coverage. 

Right now, people who buy car insurance in Michigan also have to purchase something called Personal Injury Protection.  But, Representative Pete Lund says drivers who don't want the coverage should by law be able to pay for something less.

“I think it’s good to give people the options in life.”