LANSING, Mich. (WLNS) – In this week’s Legal Edge, local attorney Bryan Waldman breaks down recent changes made to Michigan’s no-fault auto insurance laws and how those changes are impacting care that accident victims receive.

But first, why does Michigan have no-fault auto insurance?

“Back in the early 1970s, there was a movement within the insurance industry toward a no-fault system. It was based on the fact that there was frustration [because] there were too many small claims being paid to people with little minor whiplash injuries. Every fender bender resulted in property damage, and there was just too much litigation over little fender benders,” said Waldman.

“One of the big changes being made is people do have the choice now to limit their medical coverage, which sounds great,” said Waldman.

“But do people really know what they’re choosing? Do they really understand the consequences of what they’re giving? For what are really relatively minor cost savings in their premium… The big one that you’re hearing about now has to do with the legislature, limiting what certain healthcare companies can charge for their services and really making a dramatic cut.”

It’s essentially a 45% cut in what companies charge, and a lot of these companies are saying we can’t afford to do that and are going out of business.