House Committee Passes No-Fault Insurance Reform Bill: Headed to - WLNS TV 6 Lansing - Jackson | Your Local News Leader

House Committee Passes No-Fault Insurance Reform Bill: Headed to House

It's no secret auto insurance in the state of Michigan is expensive.

In fact, it's the highest in the country. Well, help could be on the way.

Thursday, a house committee passed a bill that could change Michigan's no-fault insurance system, but as our Nick Perreault found out, while some say it will save you money others say changing the system will cost you more in the long run.

By a 10 to 5 party line vote, Michigan's house insurance committee approved changes that would do away with unlimited medical benefits if you're injured in an accident.

Instead it would set a million dollar cap lowering premiums by an estimated $125 a year and save households up to $300 annually.

"We're putting our families at risk of going personally bankrupt to provide the care that they need for their loved ones."

Representative and vice chairman Kate Segal is one of 5 democrats who opposed the bill. She argues it's too complex and important to push to the house floor after only two days of testimony.

"They won't have to fight and struggle every single day," said Eric Thomas.

Eric Thomas says without unlimited coverage those injured could spend years struggling to pay for medical expenses, he's been doing it for 15 years.

"We just want to make it a fair, level playing field," said Assistant State Director NIFB Amanda Fisher.

Amanda Fisher is on the other side, Fisher represents independent businesses across the state and says unlimited medical benefits provided under no-fault insurance, force some businesses and seniors to pay twice for the same coverage.

"That's all we really want is a more competitive insurance market, affordable insurance so that everybody can be covered."

Chair Peter Lund says those currently injured will still receive unlimited coverage, but admits there is still work left to be done.

"We have a lot of people who have been given false information and we're going to try our best to dispel the false information and get the truth out there," Representative Lund said.

The bill now moves to the House floor and those both in favor and against it, expect this heated debate to continue, many say it's a life changing decision that will affect many throughout the state of Michigan.

For other statistics on no fault insurance for the state of Michigan, please visit

The bill would also create a fraud authority to investigate insurance fraud. About 10 percent of claims are fraudulent, supporters say this fund would also help reduce your annual payments.

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