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Debate over no-fault auto insurance heats up in Michigan

Many people know that Michigan's no-fault auto insurance system has come under fire recently. Some people think that it results in excessive spending when people suffer serious injuries in car accidents. However, those who have had any experience with a serious injury know that the costs of medical care for such injuries can be incredibly expensive.

In order to have a more informed debate on the topic, the Brain Injury Association of Michigan and the Coalition Protecting Auto No-Fault have attempted to obtain more information about the costs of uncapped coverage. To that end, a court ruling late last month stated that the Michigan Catastrophic Claims Association must provide more information about how it sets auto insurance rates.

The Brain Injury Association of Michigan and the Coalition Protecting Auto No-Fault had sued the MCCA for the release of information regarding a $175 fee that is assessed to insurance premiums in Michigan. The fee reportedly helps reimburse insurers for costs when victims of car accident injuries need more than $500,000 for medical care.

The fee has increased every year for the past 12 years.

The aim of the plaintiffs in this lawsuit is reportedly to prove that the $175 fee is more than what is necessary.

An Ingham County judge ruled late last month that the MCCA is a public body, and thus it must release the information that has been requested. This will help determine whether drivers are being overcharged.

It remains to be seen what will come of the availability of this information. What is clear is that, unfortunately, many people sustain serious injuries in car accidents in Michigan. The care for such injuries, as well as related lost wages and damages, does sometimes reach into the millions of dollars. Far too often, insurers minimize claims leaving car accident victims without the money they need for suitable care. This is one reason why those who are injured in auto accidents may benefit from legal counsel.

Source: LivingstonDaily.com, "Sound ruling on Michigan insurance information," Jan. 7, 2013

  • Our Michigan personal injury law firm handles no-fault auto insurance disputes. To learn more, please visit our No-Fault Insurance page.

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