New Auto Insurance Plan Introduced in Michigan House

September 15, 2011

A new proposal that would change Michigan’s auto insurance coverage requirements for people injured in accidents has been introduced in the state Legislature.

The latest proposal to change the system was introduced Tuesday in the state House.

Michigan now is the only state in the nation that mandates uncapped medical benefit coverage for people seriously injured in auto accidents. The new proposals instead would offer motorists less expensive insurance in exchange for limited personal injury protection coverage.

The new proposal would offer a range of coverage from $250,000 to $5 million.

Opponents of the proposed legislation say motorists opting for less coverage could wind up underinsured and in deep financial trouble if they’re seriously injured in an accident. Critics say the plan could burden Michigan’s Medicaid program with additional costs.

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