Skubick: Battle of revamping no-fault insurance heats up again

LANSING, Mich (WLNS) – Despite repeated failed attempts to revamp the state’s no-fault law, lawmakers are not giving up and are preparing another run at it.

Those who want to rewrite the no-fault car insurance law claim the insurance and health costs are skyrocketing and some motorists would rather drive without the insurance rather than take money away from their other household costs.

What some drivers do is purchase an insurance policy, get a license plate from the Secretary of State and then they cancel the insurance and, unless they are stopped by the cops, the drivers can skirt state law.

Rep. Peter Lucido wants a law ordering insurance agents to notify the state immediately when a motorists cancels their insurance.

“It doesn’t cost the taxpayers anything,” says the state representative. “The insurance agents would reports changes to the policies such as cancellation, or non-payment and if the car insurance is transferred.

The effort to hold down the cost of no-fault has gone behind closed doors as the mayor of Detroit and the Republican Speaker of the House are drafting legislation that would impose a fee schedule on hospitals so that they could not charge more money for services to those covered by the no-fault system.

The hospitals are fighting that.

Detroit Representative Sherry Gay-Dagnogo contends, motorists in the cities are getting hit the hardest and the reforms need to start with this.

“You have people in Detroit and other urban communities that have their insurance based on whether they have a job and their education level and their zip code,” explained Rep. Gay-Dagnogo. “We are still redlineing and that is unfair.”

Gov. Rick Snyder wants to change no-fault too but so far legislative efforts have stalled as the trial lawyers, hospitals and insurance companies continue their battle over what form these changes will take.

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