The Car and Truck Fleet and Leasing Management Magazine

Michigan Bill Seeks to Change No-Fault Insurance Law

May 01, 2008

LANSING, Mich. --- A new bipartisan coalition is working to change Michigan's no-fault insurance law to permit drivers to buy less medical coverage in order to save money, the Detroit Free Press reported.

A number of organizations, including the Michigan Chamber of Commerce and Detroit Urban League, are working with legislators from Macomb County and Detroit to bring about the change. Michigan is the sole state that requires drivers to buy medical coverage with no monetary limits. This requirement, insurance companies say, leads to higher auto insurance rates in the state.

The Drivers for Savings coalition is backing a Senate bill that would let drivers buy as little as $50,000 in medical coverage. The bill's sponsor, Senator Alan Sanborn (R-Richmond), estimated that a Detroit driver who now pays $4,000 a year on comprehensive insurance could save as much as $50 a month if the bill becomes law. Drivers would still have the option of buying unlimited medical coverage, however, if that's what they preferred.

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