Michigan Lawmakers Fighting over PIP Changes
In the state of Michigan, Democrats and Republicans are fighting over proposed auto insurance law changes. We are n the year 2011 which means that the 2012 elections will be on us in about one year so law makers are trying to address changes that they believe need to be made in order to sway voters next year. The new law would make it so that people would have to select how much PIP or personal injury protection that they want to have. The current law has no cap for PIP benefits. Michigan is the only state that current allows for this which is why many politicians want it changed because they feel that too many people abuse it. Now drivers would choose their limits which are between $500,000 and five million dollars.
Many Democrats n the state feel that the change is unnecessary. Others argue that in order to keep auto insurance costs low for policy holders and the state that something needs to be changed. However, some Democrats say that the measure would only help auto insurance coverage providers and hurt consumers. If consumers do not have enough PIP coverage when they become injured then they might not be able to survive. For example, if someone injures another person and only has $500,000 in personal injury protection coverage then the person who is injured might not be able to cover all of their medical expenses and lost wages. Many drivers have been seriously injured and become disabled due to automobile accidents.
Republicans have stated that consumers would have lower auto insurance premiums if they have the choice of the amount of PIP coverage that they have. Many families are struggling right now and could use lower insurance premiums but right now the changes might not yield much lower premium rates. This is because minimum liability amounts might have to be adjusted to offset the personal injury protection changes. If this happens then consumers in the state would have to buy additional coverage which would increase their premiums. Many drivers have newer vehicles and are forced to buy collision or comprehensive auto insurance coverage so it is important right now for Democrats and Republicans to negotiate on this issue. Drivers need lower insurance premiums but not at their own personal expense.
Source:
Bloomberg Business week
