According to the definition, “No-Fault Insurance” has the goal of lowering premium costs by avoiding expensive litigation over the causes of accidents, while providing quick payments for injuries or loss of property. The victim’s car insurance company would only pay out the claim, while the driver-at-fault’s insurance company would pay out a claim and charge the party a higher insurance premium as they are now higher risk.”
No Fault Insurance has been a recent topic of debate in Michigan courts. Legislation to cap auto insurance payouts at $1 million passed out of the Michigan House committee on Insurance along party lines, with Republicans supporting the reforms.
The bill would end unlimited lifetime medical benefits for those injured in car accidents starting for anyone in an accident after December 31.
According to Michigan Governor, Rick Snyder, “Michiganders have seen their auto insurance rates rise faster than any other state in the country. It has been 40 years since the no-fault system has been implemented and it’s long overdue for review. These changes will create a policy that continues to cover accident victims far better than any other state and will create cost controls that stem the tide of rising insurance premiums while also providing immediate relief for families.”
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