Poll Suggests Residents Oppose Reform of Michigan Auto No-Fault System

It’s not clear what message state legislators need to get before dropping efforts to reform the Michigan auto no-fault system, but a recent poll of Michigan residents confirmed that the vast majority of residents are opposed to the proposed reforms.

Apparently, no one is fooled by the insurance industry’s attempt to masquerade profit-increasing legislation as “reforms” that allegedly benefit the people. In the poll, sponsored by the Coalition Protecting Auto No-fault (CPAN), Michigan residents made it clear that saving $10 a month on auto insurance for a year is not worth forfeiting lifetime medical care in the event of a catastrophic car accident. Nor does a vast majority trust the insurance industry to make auto insurance reforms that are in the best interest of Michigan residents.

Results of Michigan Auto No-fault Poll

According to the CPAN website, results of the poll were:

Question #1: Do you trust the insurance industry to propose auto insurance reforms that are good for the people of Michigan?

            No, I don't trust the insurance industry: 83.5% (+3.3/-4.0%)

            Yes, I trust the insurance industry: 16.5% (+4.0/-3.3%)

Question #2: Reforming the Michigan auto no-fault insurance system could shift millions of dollars in costs onto taxpayers. Do you support this proposal?

            I don’t support shifting costs: 87.9% (+2.8/-3.5%)

            I support shifting costs onto taxpayers: 12.1% (-2.8/+3.5%)

Question #3: Is saving $10/month for 1 year worth losing your right to receive lifetime care if you're in a catastrophic auto accident?

            Yes, losing lifetime care is worth $120:  16.8% (+4.2/-3.5%)

            No, $120 is not worth losing lifetime care:  83.2% (-3.5/+4.2%)

(The poll of 500 Michigan residents was conducted through Google Consumer Surveys, rated the second most accurate national poll in the 2012 presidential campaign by New York Times' statistician/polling expert Nate Silver)

On the CPAN website, the organization’s President John Cornack is quoted in regard to the poll results as saying, “Once drivers and accident survivors take a look at the details of the bill, it’s very obvious to them that these changes benefit only insurance companies at the expense of everyone else -- and I think this poll is reflecting that. And it’s clear (Michigan drivers) would need to see real and lasting savings if they were to accept changes to the Michigan auto no-fault system like those being proposed by the insurance industry.”

Michigan Drivers Should Continue Voicing their Concerns

Governor Rick Snyder and certain legislators seem hell bent on pushing the Michigan auto no-fault reforms through. Michigan drivers and residents need to communicate to their legislators that the proposed reforms only benefit the insurance companies and should be dropped. The minimal savings on insurance rates that may result from the reform legislation are likely to be temporary and certainly not worth the sacrifice of lifetime medical care for people catastrophically injured in a Michigan car accident.

It’s interesting to note that in 2003 Colorado converted from a no-fault insurance system to a tort system. While insurance rates did decrease in following years, Colorado drivers and residents were less well protected and Medicaid, Medicare and the state’s indigent protection program became heavily burdened as did the medical provider system, which had more difficulty collecting on charges. In a report on the effect of the Colorado conversion to a tort system, researchers found that private insurance payments for hospital stays related to auto accidents dropped by a third while payments by Medicaid and self-payments by victims more than doubled and Medicare payments nearly tripled. Researchers concluded, “The result is greater uncompensated care provided by Colorado’s safety net providers (medical care providers serving indigents).”

Lawsuits often necessary despite MIchigan auto no-fault system

Despite the Michigan auto no-fault insurance system, which goes a long way toward making sure people injured in Michigan car accidents get the medical care they need, there is still a need for lawsuits in most serious accidents. In catastrophic accidents lawsuits may be brought against at-fault drivers for non-economic damages and excess economic damages not covered by the no-fault insurance. Lawsuits may also need to be brought against insurance companies who negligently refuse claims or don’t do what they’re required to do legally and/or contractually.

In Michigan, the personal injury firm of Sachs Waldman, P.C., can assist in getting you the insurance benefits and recovery of damages you’re entitled to for your no-fault auto accident. Call our Detroit personal injury attorneys’ office at 1-800-638-6722 to schedule a free consultation.