Michigan, known to have the highest car insurance cost in the whole of United States, is now approaching a political showdown as it seeks to cut auto insurance rates through curbing lavish medical benefits.
An auto-friendly state, Michigan, which is one of the many places with no-fault insurance and its citizens are required to obtain personal injury protection, is the only state to demand unlimited health coverage for those who are victims of vehicular accidents.
In Michigan, car drivers who are heavily injured in car-related crashes do not need to worry about their health expenses since their auto insurance is rather expensive and it is a no-brainer that they are covered through it.
But change is now knocking at the door. Now dominated by mostly Republican legislators, the state seeks to save its citizens more money by making the health coverage optional.
Lawmakers are now set to argue their side whether they will support this new development or not. The new measure includes mandating rate cuts for personal injury protection, which is better known as PIP.
Democrat lawmakers, meanwhile, urge their colleagues to remove the use of non-driving factors, including ZIP codes which determine the person’s premium since for them this is discriminatory and harmful to those in the low-tier of society.
In place of this, the Democrats proposed a rollback in PIP rates so that people will not be shocked with the new development. As soon as people adjust to this new legislation and once approved, Michigan will implement it slowly.
These attempts to change the system in the car insurance industry of Michigan is nothing new as there have been clamors from both the Senate and House to pass measures which will be more pro-people.
In 1992 and 1994, voters were able to tone down the proposal to have a cap on medical benefits as regards car-related accidents.