Uncovering the Myths of Michigan Auto Insurance

Myth #1Michigan's auto insurance system is broken.Fact Michigan's 35-year-old auto no-fault system offers the best coverage in the nation at a cost that within the national average for the majority of drivers. It significantly reduces lawsuits while providing full injury and rehabilitation benefits for as long as the injury persists.Myth #2Michigan's requirement that all drivers carry full injury and rehabilitation insurance is driving up the cost of auto insurance in Michigan.FactIt costs more to insure the vehicle than it does the people in it. The cost of collision coverage accounts for about 60 percent of an auto insurance policy, compared to less than 30 percent for personal injury protection.Myth#3 Reducing injury and rehabilitation benefits will lower insurance rates.FactInsurance companies refuse to guarantee savings In exchange for reduced benefits. In fact, taking away full injury and rehabilitation benefits would increase lawsuits and drive up insurance costs. More drivers would be forced to purchase additional coverage to protect themselves from underinsured drivers, and accident victims would be forced to sue the at-fault driver to recover the cost of their injuries.Myth #4$50,000 in injury and rehabilitation coverage is all that is needed.FactWhen the costs of emergency medical care, hospital bills, doctors' fees and rehabilitation are taken into account, the final bill for a serious auto accident can cost millions of dollars. Seriously injured accident victims who purchase the proposed minimum coverage would then be forced to pay out of their own pocket or sue the other driver.Myth #5Insurance companies want to offer reduced injury and rehabilitation coverage so drivers who otherwise could not pay for insurance will be able to afford it.FactTaking away full injury and rehabilitation benefits will allow insurance companies to shift their costs onto the backs of taxpayers. Seriously injured accident victims who purchase reduced injury and rehabilitation auto insurance would be forced to find alternative sources for their care such as welfare programs like Medicaid, to pay for their care.216 N. Chestnut St., Lansing, MI 48933Phone: 517-882-1096 www.CPAN.uswww.facebook.com/ProtectNoFaul