After more than four decades under the current no-fault system, Michigan is about to see major reform for the first time since the No-Fault Automobile Insurance Law took effect in 1973. Last week, Governor Whitmer signed a bill into law that contains a number of sweeping changes to the No Fault Act. While we are still reviewing all 125 pages of the law to understand these changes and their potential impacts, we thought we’d share a brief summary given the current level of interest.
In a statement on Friday, May 24, Governor Gretchen Whitmer wrote:
"This plan will help drivers from Detroit all the way to the U.P. It guarantees lower auto insurance rates for eight years, protects people’s choice to pick their own insurance and coverage options while preserving the safety net, and bans insurance companies from using discriminatory non-driving factors when setting rates."
As reported in last Friday’s NewsNow, the legislature overwhelmingly passed a bipartisan no-fault reform package after weeks of negotiations between the legislative leadership.
What's Next?
Important to note is the date the new law goes into effect: July 1, 2020. We will be your source in the upcoming weeks and months on the changes resulting from no-fault reform and the impact these have Michiganders.
MCCA Change: Effective July 1, 2019, the MCCA Assessment is increasing $28 per vehicle, per year.
The assessment for Antique and Collectible Autos is increasing $5.00 per vehicle, per year.
While this senate bill took an important step towards reforming the outdated and broken Michigan no-fault system, often times bills include loop holes. There are many professionals who believe it may not have the same impact as expected.
This bill also does not address the issue of collision costs. Have you looked at your most recent collision repairs? With new technology in windshields, bumpers and other areas of the vehicle, the cost for repairs in increasing rapidly.
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