CPAN Calls on Gov. Whitmer to Protect Consumers Without Raiding Fund Set Aside for Catastrophic Accident Victims

CPAN Calls on Gov. Whitmer to Protect Consumers Without Raiding Fund Set Aside for Catastrophic Accident Victims

Hutchings: Auto accident survivors and their families deserve better

LANSING, Mich.—(Nov. 1, 2021)— The following statement can be attributed to CPAN President Devin Hutchings.  

“Gov. Whitmer is right that consumers deserve relief from greedy auto insurance companies. Unfortunately, taking money from the catastrophic claims fund—which was designed specifically to care for those with serious injuries—is a slap in the face to the survivors and families who have been begging for relief from the Michigan catastrophic care crisis created by the 45% government-mandated cut in care under the new auto insurance law. 

For years, auto insurers have been permitted to increase rates with impunity, resulting in Michigan drivers being outrageously overcharged. As part of that, insurers approved huge assessments that created the excess at the MCCA, but things have gotten worse under the new law, because not only are the MCCA and insurance companies richer than ever, they have slashed care for thousands of Michiganders. The Governor’s announcement seems designed to distract our attention away from the real issue -- the fact that survivors of catastrophic auto accidents are suffering under the new law, and that auto insurance companies are continuing to gouge consumers.  

A recent report from the Consumer Federation of America found that auto insurance companies overcharged drivers by $1.12 billion in 2020, when the pandemic significantly reduced driving and claims. As the watchdog for Michigan policyholders, CPAN has demanded that the Michigan Department of Insurance and Financial Services (DIFS) investigate whether these illegitimate profits should be returned to drivers—but we’ve received zero response from DIFS or the Governor’s office. 

The Governor says we need to ‘use every resource we have to help people thrive’—we agree, and we again are calling on her administration to take strong action to protect consumers without punishing auto accident survivors and their families. They deserve better."