Plan to overhaul Michigan No-Fault car insurance a risk for Michigan drivers

Michigan Auto Law Attorney Steven Gursten

Michigan had better think long and hard about whether it wants Detroit Mayor Duggan and House Speaker Leonard as its designated drivers on reforming the entire state’s No Fault car insurance system. We may find ourselves in a ditch or, worse yet, going over a cliff.

Steven M. Gursten, an auto accident attorney at Farmington Hills-based auto accident law firm Michigan Auto Law, says a newly introduced plan to reduce car insurance rates for Michigan drivers is a dangerous proposition.

“Michigan had better think long and hard about whether it wants Detroit Mayor Duggan and House Speaker Leonard as its designated drivers on reforming the entire state’s No Fault car insurance system,” says Gursten, who has extensive experience with and knowledge of Michigan’s No Fault car insurance law.

“We may find ourselves in a ditch or, worse yet, going over a cliff.”

On Tuesday, September 26, Detroit Mayor Mike Duggan (D) and House Speaker Tom Leonard (R-DeWitt) outlined what they call their “Driver’s Choice Insurance Reform” plan, whose aim, they assert, is “to reduce Michigan drivers’ car insurance bills an average of 20%” and, thus, bring “significant relief to residents paying the nation’s costliest insurance premiums.”

Duggan, who stands for re-election in November, previously backed the failed D-Insurance plan.

Although the details of the plan were not immediately available as the official version (House Bill 5013) had not yet been introduced in the Michigan Legislature, Gursten analyzed the plan.

His analysis appears in his Michigan Auto Law blog post, “Duggan, Leonard plan overhaul of No-Fault car insurance” (http://www.michiganautolaw.com/blog/2017/09/26/duggan-leonard-no-fault-car-insurance-overhaul/).

Regarding the claim of price savings averaging 20% under the plan, Gursten calls it “an empty, unrealistic promise.”

Gursten notes that such savings were unlikely to pass given Senate Majority Leader Meekhof (R-West Olive)’s public pronouncements that such mandatory rate rollbacks would be “dead on arrival” in the Senate. Gursten also notes that, even if 20% rate reductions were to occur, Michigan drivers would still…

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