The Problem

Michigan is a “no-fault state” when it comes to your car insurance. This is to ensure that people injured in an accident receive the medical care they need and to reduce frivolous lawsuits and costly settlements. But, did you know that out of only 12 no-fault states in the U.S., Michigan is the only one to require you to pay for unlimited medical benefits?  Even if you don’t need them, want them, or can afford them.

95 percent of all auto-related injuries require less than $50,000 in coverage.
State government mandates require drivers to buy unlimited personal injury protection (PIP) to cover medical expenses in the event of an accident injury.  But 95 percent of all auto-related injuries require less than $50,000 in health services. What’s this mean?  It means Michigan drivers are paying for significantly more coverage than they may ever need.

What’s worse?  Across Michigan, more drivers are going without insurance and their costs are being passed on to drivers who have it.
The number of uninsured drivers in Michigan is rising steadily. 15 years ago, 1 out of 10 drivers had no insurance. Today, 1 out of 5 drivers in Michigan do not have insurance.  In Detroit, 55 percent of drivers do not have insurance, and it’s not because they don’t want it.  Many can’t afford it, in large part because of the more expensive unlimited medical coverage required to be a part of everyone’s policy.

When an uninsured driver is injured in an auto accident, unlimited medical costs are still paid out from a state claims fund - costs passed on to drivers with insurance.

It’s not fair.  It costs more.  And, unless something changes, there’s no getting around it.