Lawmaker sponsors plan to scrap state’s no-fault law

In the latest attempt to bring significant relief to drivers paying the most expensive car insurance premiums in the nation, state Rep. Joe Bellino this week joined House colleagues in introducing wide-ranging legislation repealing Michigan’s no-fault car insurance system.

The eight-bill package eliminates the no-fault system and moves Michigan to a full tort system similar to other states such as Ohio.

“Every time there’s a viable reform proposal in the Legislature – one that special interests have a hard time digesting – it ends up being killed,” said Bellino, of Monroe, “After decades of deadlock and partisan politics blocking change for Monroe County drivers, Michigan should consider repealing its no-fault system and replacing it with a system that drivers can afford and 38 other states use. As a border county, Monroe motorists and businesses know firsthand how damaging no-fault is to our economy. We cannot continue to be burdened by the out-of-control costs associated with the state’s no-fault system.”

The plan continues the mandate that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering.

Colorado abandoned its no-fault system in 2003. According to a 2008 governor’s study, the average car insurance premium in the state decreased 35 percent since the state moved to a tort auto insurance system. Michigan drivers could see greater savings by parting ways with its no-fault system, which is the only one in the nation mandating unlimited medical coverage.

Bellino’s measure, House Bill 4401, along with the rest of the bill package, House Bills 4397-4404, has been referred to the House Insurance Committee.