first_img01Feb Miller part of new effort fixing Michigan’s car insurance system State Rep. Aaron Miller today joined House colleagues in unveiling an eight-bill package repealing Michigan’s no-fault car insurance system.The goal of the plan is to bring significant relief to drivers paying the nation’s most expensive insurance premiums.The proposal eliminates the no-fault system and moves Michigan to a full-tort system similar to other states like Indiana. The legislation continues benefits for everyone already receiving lifetime health care after a catastrophic traffic accident.“I’ve been very consistent with this,” said Miller, of Sturgis. “With the failure of HB 5013 in November, I am no longer advocating for small changes. Opponents to no-fault reform always successfully kill those changes and never negotiate in any way to lower caps or institute fee schedules for care. Therefore, I’m happy to be part of this package to eliminate Michigan’s no-fault system.”The plan still mandates that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering.The legislation also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association (MCCA) until it is no longer needed. The MCCA system will be closed to new entrants.“If it works well in Indiana and people are moving there, it can and will absolutely work for us in Michigan,” Miller said. “It’s time to get rid of this system that has been stopping our population growth and economic development for so long.”Colorado abandoned its no-fault system in 2003. According to a 2008 governor’s study, the average car insurance premium in the state decreased 35 percent since the state moved to a tort auto insurance system. Michigan drivers could see greater savings by parting ways with its no-fault system, which is the only one in the nation that mandates unlimited health coverage. Florida, one of the 12 states operating with a no-fault system, is also debating repeal.Miller said rates would be reduced even further due to more competition from insurance companies coming back to the state to do more business, adding that the no-fault system is the reason why some insurers refuse to do business in Michigan.The bill package, House Bills 5517-23, will be formally read into the record next week. Categories: Miller Newslast_img read more