Monday, September 19, 2011

Auto insurance changes debated in Michigan

The only state in the United States that authorizes unlimited medical benefit treatment for people critically injured in car accidents is Michigan. Under proposals, this would vary because it allows motorists to have a less expensive insurance in exchange for limited personal injury protection coverage. Those who support the change, as well as the auto insurance agencies, believe that it will allow motorists to get rid of auto insurance that is more expensive and that don’t really want. The insurers want help with there system because it is becoming more and more expensive which is hurting there finances. Sen. Joe Hune believes that because the cost of the system is so high it is going to become weak and won’t be able to maintain. People in the proposed legislation believe that the state's no-fault auto insurance system might threaten the financial stability because motorists with less coverage will end up getting in financial trouble if they get in a serious car accident. Pete Kuhnmuench, the executive director of the Insurance Institute of Michigan thinks that the consumers in Michigan shouldn’t focus on an insurance system that is just a one quick fix for everything.

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