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CPAN statement on SB 1014 and 787: Auto Insurance Bills Passed by State Senate Would Make Children, Seniors, Young Professionals & Others Second-Class Citizens

Legislation Would Shift Cost of Care Resulting from Catastrophic Car Injuries to Michigan Taxpayers Lansing — The Michigan Senate today passed Senate Bills 1014 and 787, which would erode protections for residents who suffer catastrophic injuries in car accidents and shift the cost of care to Michigan taxpayers. SB 1014 addresses the Assigned Claims Plan (ACP) and would cap the cost of care to $400,000. SB 787 would offer a so-called “carve-out” for senior citizens that in reality severely decreases … read more

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Top Ten Outrageous Auto Insurance Quotes in Michigan

Buying auto insurance in Michigan is frustrating for just about everyone, especially in Detroit. While reviewing hundreds of premium quotes offered by some of the state’s major auto insurers on behalf of the Coalition Protecting Auto No-Fault (CPAN), auto insurance expert Doug Heller identified 10 quotes that are particularly outrageous examples of the various ways auto insurance companies have cheated good drivers in Michigan, even as the insurers blame anybody but themselves for the high cost of their product. A … read more

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The Rating Game

How Auto Insurance Giants’ Pricing Practices Drive Up Rates for Safe Drivers Across Michigan All drivers must buy auto insurance, but insurance companies raise rates on good drivers based on personal and economic characteristics Every driver in Michigan – whether rich or poor, married or single, male or female – must buy auto insurance. Although the state regulates consumer behavior with this mandate, the insurance companies that sell coverage have been allowed to price policies however they want. As a … read more

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No-Fault Repeal Legislation: Bad Policy, Poorly Written

A blog post by CPAN Legal Counsel George Sinas The sponsors of the 7-bill package identified as HB 5517 – 5523 claim that these bills will repeal the Michigan No-Fault Act and return Michigan to a system of pure tort law. Apart from the social irresponsibility of such legislation, is the harsh reality that these bills, as currently written, are a drafting nightmare that are virtually impossible to fully understand. Clearly these bills outlaw the sale of all no-fault PIP … read more

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Theis-Led No-Fault Elimination Plan is an Irresponsible Cost Shift to Taxpayers

Viable “Fair and Affordable Reform Package” still awaiting a committee hearing LANSING – A select group of Republican state lawmakers introduced legislation today that would completely dismantle Michigan no-fault auto insurance system. House Bills 5517 – 5523, co-sponsored and led by Rep. Lana Theis (R-Brighton), would take away the lifetime auto injury coverage guaranteed under Michigan’s current auto insurance system and replace it with a tort system where injured drivers would sue at-fault drivers to recover costs for their injuries. “Tort … read more

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Vote No on HB 5013

The Top Five Things Mike Duggan and Tom Leonard Don’t Want You to Know about their Auto Insurance Bill

LANSING – The House Insurance Committee just voted to move legislation forward that would have dramatic and draconian effects on Michigan auto insurance system. House Bill 5013, sponsored by Rep. Lana Theis (R-Brighton), is being pushed by Detroit Mayor Mike Duggan and House Speaker Tom Leonard. The bill would make significant changes to Michigan’s auto insurance system by setting stringent caps on medical coverage, taking away legal rights from Michigan auto accident victims, imposing unsustainable fee schedules on health care … read more

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Figure 1. Annual Premiums in Detroit Differ for Male and Female Good Drivers

New Legislation Will Make Michigan Auto Insurance More Fair and Affordable

House Bills 5101-5111 include medical cost-containment requirements, bans on unfair auto insurance rating practices and fraud prevention measures LANSING, MI – A framework of bills, dubbed the “Fair and Affordable No-Fault Reform Package”, was introduced last week that provides a clear alternative to the reforms being pushed by Detroit Mayor Mike Duggan, House Speaker Tom Leonard and the insurance industry. The legislation is among the most comprehensive auto insurance reform packages to be introduced in the past 10 years. The effort … read more

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Catastrophic Accident Survivor Brian Woodward Talks No-Fault Reform

Detroit resident Brian Woodward was catastrophically injured 30-plus years ago in an auto accident. Listen to him share what his life would be like if he would have purchased an auto insurance policy with a $250,000 cap such as the Duggan/Leonard PIP Cap Plan plan (HB 5013) being discussed in the House Insurance Committee Hearing tomorrow. Click below to listen to his interview on the Mildred Gaddis Show, WPZR 102.7 FM.

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Comparing the Competing No-Fault Reform Plans

How does the Duggan/Leonard PIP cap plan compare to the Fair and Affordable No-Fault Reform proposal? In the past two weeks, two competing auto insurance reform proposals have been announced in Lansing. While both proposals have some level of bipartisan support and both seek to address fraud and rising medical costs to treat accident victims, there are some significant differences that will impact all stakeholders in Michigan’s no-fault auto insurance system. This post will provide a quick overview of each proposal, … read more

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Way Too Many Faults in Mayor Duggan’s No-Fault Reform Proposal

Caps on injury coverage would cost state taxpayers hundreds of millions in new Medicaid expenses, leave patients without care while forcing them into poverty Lansing – Detroit Mayor Mike Duggan joined House Speaker Tom Leonard and Rep. Lana Theis today to announce a proposal to slash injury care for Michigan auto accident victims. The proposal calls for allowing motorists to purchase insurance policies that cap care at either $250,000 or $500,000, or drivers can continue purchasing lifetime injury coverage. In … read more

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