Skubick: Changes To Michigan’s No Fault Insurance Law Confusing

LANSING, MI (WLNS) – Change to the state’s no fault car insurance law flew out of the state senate in record time and then it came out of a house committee last week, but it appears to be stalled on the house floor, here’s why.

The bill’s sponsor concedes he does know how many votes he has but it is known that some are worried about the $200 savings for two years, they claim that’s not enough.

“That’s insulting,” said state senator Virgil Smith (d), Detroit.
Reporter: “That’s what?”
Senator Smith: “Insulting to somebody that’s paying $5,000.”
Reporter: “That’s not enough?”
Senator Smith: “No.”

The senate sponsor contends the $200 savings is just the base amount.

“I think it’s the baseline that’s the minimum, many policies will be much, much higher savings,” said state senator Joe Hune (r), Brighton.
Reporter: “Is this a boondoggle for the insurance industry as the other side suggest?”
Senator Hune: “Absolutely not, the current system is a boondoggle for the medical community.”

There is also a dispute over the unlimited insurance benefits which are now guaranteed under the current law.

This democrats argues, the insurance companies will find a way to get around, that is if this bill passes.

“Absolutely, I mean that’s their first goal because in their mind they would like to stop paying as much as they are paying,” said state senator Burt Johnson (r), Grand Ledge.

“I would say absolutely not. There will still remain unlimited benefits. There is no cap on this package of bills. Anybody that’s been injured will still receive unlimited benefits and I want to make sure that is the case,” said state representative Tom Leonard (r), DeWitt.

But this republican wants the cap on benefits.

“We need to have not only this reform, we need to move forward with a cap. Maybe even $1 million. It would be higher than any other state in the country. We can’t continue to pay these horrible rates,” said state senator Rick Jones (r), Grand Ledge.

With all this back and forth over what’s in or out of the package it explains why a vote in the house is not imminent.

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