Mackinac Center Praises Progress On Auto Insurance

mackinaccenterforpublicpolicy-3
mackinaccenterforpublicpolicy-3

The Michigan Senate on Tuesday approved Senate Bill 1, the plan to reform the state’s auto insurance system. Applauding the move is the Mackinac Center for Public Policy, with Research Director Michael Van Beek telling WSJM News the plan will remove the requirement that everyone have unlimited medical benefits for injuries suffered in crashes. He says drivers in no other state have that requirement, and are just fine.

“Most people are covered by their health insurer already for these kinds of costs, and changing Michigan’s auto insurance like Senate Bill 1 would do wouldn’t put Michiganders in any different situation than anybody else in the rest of the country,” Van Beek said.

Van Beek says medical providers and some attorneys have been the resistance to reforming Michigan’s auto insurance system.

“There’s obviously large interest groups that benefit from this system,” Van Beek said. “Medical providers, hospitals, doctors, they — they benefit greatly from the fact that they can charge insurers whatever they can get away with.”

With the state Senate approving the reform plan this week, it goes to the state House. Van Beek can’t make any predictions regarding what will happen there, but tells us the Senate action is very encouraging. He also can’t predict whether Governor Gretchen Whitmer would sign the law if it clears the House.