(CBS DETROIT)- In May of 2019 Governor Whitmer signed into legislation a No-Fault auto insurance reform in an effort to address high premiums, and to lower costs for Michigan Drivers. That new policy goes into effect this week.
“Right now starting July 1st will be the largest change in the car insurance law in the history of Michigan,” said Eric Poe CEO of CURE Auto Insurance.READ MORE: Michigan Matters: “Help Wanted!” Growing Woe for Business
Poe says he’s one of 26 new auto insurance providers to start writing policies in Michigan on July 1st, 2021 when the new legislation takes effect.
“Michigan has had the highest cost for car insurance, Detroiter’s as a city have been paying more for car insurance than any city in the United States,” Poe said.
After nearly 40 years of requiring drivers to have unlimited No-Fault medical coverage in case of an auto accident, Michigan drivers can now choose from 1 of 4 personal injury protection benefits, and for policies issued or renewed, drivers will have new coverage options to choose from.
But critics of the change coming July 1st say although insurance rates for drivers may lower, those currently receiving in-home family-provided attendant care for auto accident injuries, could see changes that will affect their care.READ MORE: Detroit Police Department Holds Graduation Ceremony For Recruit Class 2021-G
“We were looking at how to save money for residents of the state but we didn’t really look at the cost of care for post-acute patients and when you combine those two I think there is a shortfall,” said State Senator Doug Wozniak, who represents Michigan’s 36th district in Macomb County.
Rep. Wozniak joined a group of protestors outside the state Capital back in June. The group made up of lawmakers and injured car survivors were concerned over portions of the new auto law.
“So if you’re injured in an accident your provider can charge up to 200% of the Medicare charges,” said Wozniak.
Wozniak says he’s working on bills that would provide alternatives to the new insurance law in hopes it will not affect the current care that auto accident survivors are receiving, but says it’s a process
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