Snyder proposes reform for Michigan auto insurance

Apr 19, 2013

File photo
Credit WMUK

Governor Snyder has proposed revamping Michigan's auto insurance system. It would cap damages from the Michigan Catastrophic Claims fund at $1-million. 

There currently is not a cap for people severely injured in accidents. WMUK's Gordon Evans spoke with Republican Representative Margaret O'Brien of Portage and Democrat Kate Segal of Battle Creek. Both Representatives serve on the House Insurance Committee. 

O'Brien says the governor's proposal would not eliminate the no-fault system of insurance. But she says Michigan's insurance rates are much higher than other states. O'Brien says that's created a big problem for families. She says care has to be provided, but it has to be done at a reasonable price. 

Segal says the proposal is not good consumer protection, and she says it will put people who suffer serious injuries through car accidents in danger of having to go into bankruptcy to cover large medical bills. Segal says the proposal won't do enough to bring down auto insurance rates, while taking away the coverage that the state currently has. 

Coverage of the auto insurance reform proposal from MliveDetroit Free Press, and Detroit News.