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MI Senators Putting Forth PIP Bills for Passage

Millions of people across the world have car insurance coverage. The economy has been in a decline in many countries especially the United States. Many politicians are putting forth bills in many states that impact the car insurance benefits that people can receive after they are involved in a car accident. One of these states is Michigan. In the state, the Senate has put forth two new bills that would negatively impact drivers. They are SB 0293 and SB 0294 and they pertain to the state’s no fault system.

When people are involved in a car accident, there needs to be a determination of who is at fault for causing the accident. For example, if a person is rear-ended, then in many states the driver who caused the accident would be the driver behind the person who got hit in the first place. SB 0293 would essentially end medical benefits for people who are involved in accidents if their medical bills total over fifty thousand dollars.

The system that the state has in place has cost the automobile companies a lot of money. Currently, the no fault system gives individuals that are involved in car accidents lifetime medical benefits and they get reimbursed for the costs to commute to and from the doctor. Other benefits include benefits for lost wages, benefits for home health care services, and home assistance benefits. These benefits can cost a lot of money and that is why some politicians want them eliminated. However, if they are then tax payers will have to pick up the tab for these services.

SB 0294 addresses monetary compensation for nursing services and home attendant care. There would be a cap put in place for these services.  The caps have not been suggested yet but the bill would allow there to be a dollar value cap in place and an hour cap in place for these services. This could really hurt people with spinal injuries such as those who are paralyzed and need a lot of home health care services.

Michigan is a state that is having major revenue issues. Many people are unemployed so this measure would really hurt the state’s economic future. Thousands of Michigan residents are currently unemployed and getting rid of these benefits would really hurt car accidents victim in the long run. Most Michigan residents are pleased with the auto insurance coverage benefits that they get.

Right now, under Michigan law, drivers must have car insurance coverage and car insurance companies must provide their policyholders with lifetime medical benefits that are unlimited. Some politicians have said this is too excessive and is unnecessary. However, one car accident can drastically impact the life of someone. The American Insurance Association said that the no fault system that Michigan has in place is quite cost effective which is a good thing.

Michigan residents need to really consider taking action to try to get their senators to change these bills because they in no way benefit consumers.  No fault personal injury protection coverage is vital to protecting accident victims from financial hardships. If the protection benefits are slashed dramatically then the number of medical bankruptcies in Michigan will increase. Many people who are involved in car accidents incur huge medical expenses and lose a lot of money in wages.

Keeping the no fault system the same would benefit Michigan residents and tax payers. Tax payers do not want to have to pick up the check for the expenses that the new caps would not cover. Hopefully, the Senators will negotiate the bills so that they can be re-written in a way that benefits consumers and insurers.

Source: Red Orbit