Important Changes to Michigan’s No-Fault Law
Mike sits down with his mother, Susan Morse, and co-host Kevin Dietz to break down the changes to Michigan's no-fault law, explain uninsured and underinsured motorist coverage, and share why he doesn't believe the promised rate reduction will happen.
About This Episode
In May of this year, Michigan’s state legislature passed a new no-fault law, changing fundamental aspects of Michigan’s existing no-fault guidelines. Mike sits down with his mother, Susan Morse, and Co-Host and investigative reporter Kevin Dietz to talk about the controversy surrounding these new changes, how insurance companies will gain, and what you need to do to have the upper hand as a Michigan driver.
Show Notes
FAQs
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What changed in Michigan's no-fault auto insurance law?
Mike Morse explains that under no-fault, it doesn’t matter whose fault the accident is: your own insurance company pays lifetime care, wage loss, household services and attendant care, and that has been unlimited. Under the new law, people will have a choice, and certain people can get a $50,000, $250,000 or $500,000 policy or unlimited. He adds that the law puts fee schedules into effect in 2020.
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Will the new no-fault law actually lower Michigan insurance rates?
Mike Morse says the promised rate reduction will never happen and that he doesn’t think drivers will see a 10% or 20% reduction; if he’s wrong, he’s wrong, and he plans to track it. He adds that if Detroiters pay the highest rates in the nation, as people love to say, 10% off the highest rates still won’t be affordable, and that injured people in Michigan are going to take the hit as their benefits run out sooner.
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What is uninsured motorist coverage and why does it matter?
Mike Morse says that if an uninsured driver hits you, your no-fault benefits still pay for your medical care, but there is no insurance to sue for your pain and suffering. He says the way to protect yourself is uninsured motorist coverage, under which your own insurance company stands in the shoes of the negligent driver. He recommends getting as much as you can afford, saying the difference between a $100,000 and a half-million-dollar policy is probably $30 or $40 a year.
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How does underinsured motorist coverage work?
Mike Morse gives an example: if a driver with a $20,000 bodily injury policy hits you and you have a half-million-dollar injury, their policy pays you $20,000, and you can then go to your own half-million-dollar policy for another $480,000. He says $100,000 in coverage is not enough these days and that people need a half million or a million.
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What happens to drivers who pick a lower no-fault coverage option and get seriously hurt?
Mike Morse says many people will take lesser amounts, and if they are in the hospital for a month, those limits will be gone real quick. Some health insurance policies cover auto injuries but most won’t, he says, and once benefits are exhausted, people end up on Medicaid, which he says provides lousier care than today’s unlimited no-fault coverage with the best doctors and facilities in the country.
