When Could No-Fault Insurance Change?

Oct. 17, 2011 - PRLog -- Grand Rapids, Oct 19, 2011: When will Michigan learn the fate of no-fault insurance? Last month we discussed Governor Snyder's bill that would reform no-fault insurance. Since then the consensus in the Lansing House of Representatives is the bill has a ways to go.

However, there are aspects of the bill that give us a rough picture of what the bill will do to health insurance in Michigan.

As it stands, no-fault insurance claims are exceeding the funding for no-fault insurance. It is clear that no-fault insurance as it exist is unsustainable. The current version of the bill would allow consumers to choose the level of  PIP (personal injury protection) in their auto insurance. While the range of coverage may change, it would be between $250 thousand and $5 million.

If the bill passes, the injured would first exhaust their PIP coverage, at that point the individual's health insurance would take over to cover any expenses. This would make having accident coverage even more important. Accident coverage works for multiple types of injuries, including those sustained from an auto accident.

So if Governor Snyder's bill is passed does that mean health insurance rates go up? Unfortunately yes, and unfortunately no one really knows what kind of rate increases to expect. Despite this we do know with the changes to health care there is no lifetime benefit maximum for health insurance. So while no-fault may change, you can still receive the care you need if you are injured.

It's important to note that while no-fault insurance hasn't yet changed, it doesn't mean that health insurance has not. We recommend that you consistently review not only your health insurance, but all of your insurance at least once a year. By reviewing you insurance, you are better able to receive the coverage you need at the best possible price.

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