Fix No-Fault


Standing Up for Michigan Drivers, Accident Survivors and Health Care Providers

The Coalition Protecting Auto No-Fault is working on behalf of Michigan drivers, accident survivors and healthcare providers to improve Michigan’s no-fault system. Michigan’s auto insurance laws have long been considered a model for the country, but recent court cases and other issues have created flaws in the system that must be addressed.

CPAN has developed 24 reforms that will improve Michigan’s no-fault system by making auto insurance more fair and affordable for drivers while also ensuring accident victims get the care they need.

Make Michigan Auto Insurance More Fair

  • Stop non-driving rating factors, such as credit scores, from impacting auto insurance rates
    • Using credit scores to set rates is inherently unfair because credit scores have nothing to do with one’s driving ability or driving record. In addition, studies have
      shown that charging higher rates to people with low credit scores disproportionately impacts minorities and low-income drivers.
  • Require auto insurers to obtain prior authorization before implementing a rate increase
    • Similar to utility companies, which must have their rate increases reviewed and approved by the state, auto insurance companies should be required to obtain prior approval from the State Insurance Commissioner before a rate increase can take effect.
  • Subject the Michigan Catastrophic Claims Association (MCCA) to Michigan’s transparency laws
    • The MCCA was created by Michigan Legislature to reimburse auto insurance companies for personal injury claims exceeding a certain amount (now set at $545,000). Each Michigan driver currently is required to pay $160 annually per vehicle to fund the MCCA, which holds more than $20 billion in assets. Even though the MCCA is a “public body” as defined by Michigan law, the public has no way to determine if the annual fee is appropriate or how the fund is being managed.

Make Michigan Auto Insurance More Affordable

  • Adopt a fee schedule for health care providers treating auto accident victims
    • By adopting a reasonable fee schedule that is 180 percent of Workers Compensation, combined with legislation that requires prompt payment by insurers, we can bring more predictability and efficiency to the claims processing system. This will save costs for both insurance companies and health care providers.
  • Cap hourly rates for family-provided attendant care
    • CPAN has historically opposed fee schedules for family-provided attendant care primarily because past proposals greatly undercompensated caregivers who were willing to give up their careers to care for their injured family members. This would have created a disincentive for family-provided care and would have resulted in more catastrophic accident victims being institutionalized. Moving forward, we will support legislation that adopts reasonable hourly rates for family-provided attendant care as long as the rate schedules are reflective of the nature and extent of a patient’s injury and their specific needs.
  • Aggressively tackle fraud and claims handling abuse
    • CPAN vigorously opposes all forms of fraud and claim handling abuse. However, anti-fraud legislation must be based upon the reality that fraud by claimants is only part of the problem. Insurers who engage in abusive claim handling practices also damage the no-fault system by fostering unnecessary litigation that drives up costs. Comprehensive fraud legislation must address both aspects of this significant problem—fraud by claimants and abuse by insurers.

Help us make these reforms a reality. Write your lawmakers and tell them you want affordable auto insurance that protects consumers and provides quality injury care to auto accident victims:


Additional Documents:

Fact Sheet About CPAN Reforms

Frequently Asked Questions

Full 24-Point List of No-Fault Reforms