Detroit Mayor Mike Duggan announced this evening during his State of the City Address that he would urge Lansing lawmakers to support major reforms to Michigan’s auto insurance system. In response to Mayor Duggan’s comments, the Coalition Protecting Auto No-Fault (CPAN) President John Cornack issued the following statement:
“We all agree that Detroiters are paying far too much for auto insurance. However, to blame Michigan’s no-fault system is completely misleading. The medical benefits provided by Michigan’s no-fault law make up roughly one-third of the cost of a policy, so to say no-fault is the main problem behind the cost of auto insurance is simply untrue.
“The mayor’s suggestion that Michigan use Ohio, which does not have no-fault, as an example of an auto insurance system is also extremely misguided. First, dropping no-fault in favor of Ohio’s model would not significantly reduce rates. What it would do is cause major delays in care for catastrophic accident victims and result in a massive cost-shift onto the backs of Michigan taxpayers – just like it did in Colorado when their Medicaid expenses tripled after changing from a no-fault to a tort system. Michigan can’t afford the expenses and accident victims can’t afford to wait for care.
“We hope Mayor Duggan will join us in standing up for accident victims in Detroit and across the state by working toward comprehensive solutions that will reduce auto insurance costs in Michigan and at the same time provide accident victims with access to the quality care and rehabilitation benefits they need for their recovery.”
CPAN is a broad coalition of health care providers, patient advocates and accident survivors who are committed to preserving Michigan’s model auto no-fault insurance system. For more information, please visit www.ProtectNoFault.org.