Time for No-Fault Auto Reform is Now
Small Business Joins Call for No-Fault Auto Reforms
February 27, 2019 (Lansing, MI) – The state’s leading small business advocate, NFIB, joined the chorus of stakeholders calling for reforms to Michigan’s broken No-Fault auto insurance system.
During testimony today before the Senate Insurance Committee Charlie Owens, State Director for NFIB in Michigan, told the committee that a survey of its small business members showed 76 percent supported reforms that would allow customer choice for selecting Personal Injury Protection levels and implementing a medical fee schedule to control claim costs.
“We’re the only state in the country to have unlimited medical benefits for auto insurance and that distinction is reflected in the high premiums that we pay,” said Owens. “Consumers and small business owners should be given a choice that allows them to fit this mandated coverage into their budgets instead of it being dictated as an all or none choice.”
Owens shared an example of the higher Michigan rates paid by a small commercial fleet of delivery vehicles when compared to border states in Ohio and Wisconsin. Owens said that if a company were operating near one of these border states and could choose where to locate the business, Michigan’s higher auto insurance could tip the balance in favor of the other state.
“Michigan has made great strides in improving our business climate and has finally become competitive with other states,” said Owens. “However, when it comes to the cost of auto insurance, we are an outlier because of our broken No-Fault system.
Owens also referenced a 2015 statewide poll of voters that showed 70 percent support for making changes to the current No-Fault auto insurance system.
