Automobile accidents happen every single day in the state of Michigan. The state has a no fault car insurance law which means that regardless of who is determined to be at fault for an accident; the insurance companies still pay for the insurance claims that are filed.
The state’s no fault law states that each driver has to pay money towards the damages relating to automobile accidents even if they in fact did not cause the accident to occur in the first place. This amount is currently $500 for all drivers and now this figure would be increased to $1,000. Many drivers in the state are furious about this because they feel that they are being unfairly targeted.
Drivers have to have no fault insurance coverage which they pay monthly premiums for. They already have to pay $500 for being involved in a car accident so doubling that expense in a bad economy is not something that many drivers can afford right now.
Gov. Rick Snyder has signed a new bill into law called HB 5362. The law was sponsored by a Republican named Cindy Denby. Politicians who support the bill have stated that drivers who are not at fault for an automobile accident can take the at fault driver to court and sue them for the money that they have to pay for the accident. However, many drivers do not have the time to wait to recover the money that they have paid out. One thousand dollars is a lot of money for drivers to have to pay. There is a provision in the bill that states that uninsured drivers will not be able to sue the at fault driver to recover the money that they paid out.
The state has had a hard time being able to continually pay out money for all of the no fault insurance claims that are filed. Michigan is a state that has a high unemployment rate so the state has said that they needed to take action. They want drivers to take on more financial responsibility so that claims for damages can be paid out faster. By having the cost double, they can help to ensure that the no fault insurance system is fiscally secure.
Many drivers are still going uninsured in Michigan. It is important for everyone to pitch in so that accident claims can be fully funded for many years to come.
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Lauren Pezzullo is a seasoned strategist who specializes in helping drivers understand localized auto insurance rate trends. Her content for CheapCarInsurance.net blends SEO precision with user-friendly insurance guidance to help find the most affordable auto coverage.