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Michigan Drivers are in Deep Confusion about No Fault Auto Insurance Reforms

Michigan drivers have been in a state of darkness over the implications of the state’s no-fault automotive insurance reforms. It is still not clear to them whether the reforms will give them big or small financial advantages. Gov. Gretchen Whitmer signed into the law on May 30 that will come into effect after July 1, 2020. Among all the key reforms, five personal injury protection (PIP) options form the center of attraction on this subject.

Certain percentages of rollback will be there in the reforms and it will remain for a time period of eight years. Post this, insurers will have to take the approval of rates given to consumers by the Michigan Department of Insurance and Financial Services. Those people who buy this insurance will not have to pay for the annual $220 Michigan Catastrophic Claims Association (MCCA). The no-fault reforms will eliminate all the discriminatory non-driving factors and there will be an increase in consumer protections by putting a check on fraud in the system.

Michigan no-fault auto insurance act came into existence in 1972 and since then there is an increase in the prices of Michigan’s auto insurance rates. The cost of no-fault auto insurance is so expensive that it makes it difficult for people living in the inner cities to afford it. And Michigan personal injury lawyer service, Moss & Colella has admitted that many people drive their vehicles without any insurance. Due to this, there is no check on the counting of insured people and people have been facing a huge financial loss due to it. 

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