Michigan Senate to Vote on Rush No Fault Reform

After less than 24 hours notice, the Michigan Senate Insurance Committee voted on and approved a No-Fault Reform bill that would give more power to insurance companies and take away benefits from injured drivers. The very next day it was approved by the Senate. Find out how the bill could affect your coverage.

Senate Bills 248 and 249 were set for a vote, amended, and approved, all before one legislator even had a chance to read them. The bills will amend Michigan's No Fault Insurance Act by reworking how catastrophic claims are handled, placing limits on attendant care benefits, and creating a Michigan Automobile Insurance Fraud Authority.

Catastrophic Claims

Right now, the Michigan Catastrophic Claims Association (MCCA) reimburses no fault insurers for any lifetime medical expenses of a consumer above $530,000 per person per accident. In exchange, the insurance providers pay a membership fee into the MCCA, which they divide up and pass on to consumers as a fee on their bill. But under the new bill, catastrophically injured motorists will only be entitled to $500,000 from their insurance providers. Then they will have to apply to a new non-profit organization for additional coverage, which will charge all Michigan motorists for the chance to use its services.

Attendant Care

The No Fault Insurance Act requires your car insurance provider to pay for any non-medical attendant care you might need in the course of your recovery, whether it is provided by a professional caregiver or a family member. The new bill would limit your compensation to $15 per hour for up to 56 hours per week for family members, and only 24 work hours per day for professionals (no matter how many people are involved). After one month of covered care, you could be required to pay 20% or up to $200 in co-pays each month on these professional expenses.

Michigan Automobile Insurance Fraud Authority

The new Michigan Automobile Insurance Fraud Authority created by the bills will be authorized to investigate, track, and help prosecute cases of individual insurance fraud. It does not, however, allow for investigation into phony insurance providers or any restriction of the insurance industry's manipulative practices.

If Senate Bills 248 and 249 become law, they could dramatically change how injured drivers pay for their medical expenses and attendant care costs. If you believe Michigan motorists deserve the top-notch insurance they now receive, contact your Representative today and tell him or her to vote no on SB 248 and 249.


Attorney Dani K. Liblang at The Liblang Law Firm, P.C., in Birmingham, Michigan has been representing injured motorists for over 30 years. She will help you navigate the changing laws and get the recovery you need. If you or someone you know has been seriously injured in an auto accident, contact The Liblang Law Firm, P.C., for a free consultation today.