Possible Crack In the MCCA Law
Michigan Senate Insurance Committee might pass an auto insurance bill that would no longer have unlimited medical insurance.
An article in the Detroit Free Press late this afternoon is reporting that Michigan’s Senate Insurance Committee might pass an amended version of Detroit Mayor Mike Duggan's D-Insurance auto insurance plan. Mayor Duggan’s plan would not only be for Detroit, but other Michigan cities as well.
Could this be the crack in the wall of the MCCA and unlimited medical auto insurance in Michigan?
The version that the Michigan Senate is looking to pass, would be open to cities with a population of at least 500,000 or where at least 35% of the drivers are uninsured.
That means citizens in cities like Kalamazoo and Warren could be able to purchase this cheaper auto insurance, cheaper because they would no longer have to buy unlimited medical insurance.
What about the rest of us. Why do we not get an opportunity to purchase this cheaper plan?
Does this sound blatantly unfair to you?
This new bill is supported by the auto insurance companies but opposed by many medical providers and the Coalition Protecting Auto No Fault. Both of these groups see this new auto insurance bill a crack in the wall of Michigan’s unlimited medical coverage for accident victims.
Mayor Duggan believes this plan would strengthen Michigan’s no-fault auto insurance. The Mayor was quoted in the Free Press article as saying "The biggest threat to no-fault is when you've got half the drivers in your city who don't even participate.” He went on to say "You either buy the most expensive insurance in America or you're a criminal if you drive, what we're doing is giving people a middle position."
He is right, if half of the people driving cars have no insurance that is a big problem for all of us.
What is this new plan? The Detroit Free Press is reporting that Detroit residents would have the option to opt out of the unlimited medical coverage provided by Michigan's no-fault auto insurance plan and have the ability to purchase reduced coverage at a reduced rate. The new policy that that the citizens of these lucky cities would be able to purchase would provide $250,000 of hospital coverage and another $25,000 of out-patient coverage.
Why did I ask earlier if this might be the crack in the wall of the MCCA? If a person can and does buy this new policy they would not be legally obligated to pay into the Michigan Catastrophic Claims Fund.
Currently Michigan citizens who purchase auto insurance are charged $186 per vehicle.
Does this new plan sound good to you?
Would you like to have the option to purchase an auto insurance plan like this one, know that you are exposing yourself to some risk?
Is it fair that not all citizens of Michigan would be able to partake in this opportunity?
What are your thoughts?
Update to my blog I wrote yesterday afternoon: the bill passed 5-3-0. It's now headed to the full Senate for consideration, after which it would go to the House of Representatives.
Let’s discuss this today on my show The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.