Mich. bill would give motorists choice in medical insurance coverage

Michigan bill would let motorists lower their auto insurance by choosing less medical coverage

http://biz.yahoo.com/ap/080429/mi_auto_insurance.html?.v=1&printer=1

Associated Press Writer David Eggert write today that some Michigan lawmakers are backing legislation that would let motorists save up to 16 percent on their auto insurance by choosing lower medical insurance coverage. Michigan is the only state to require unlimited personal injury protection benefits, which policyholders pay for through a $123 annual fee per vehicle.

$10 a month isn’t a bad amount of insurance to have unlimited medical coverage in the event of a catastrophic car wreck. However, legislation was introduced last week that would let motorists choose medical insurance coverage worth between $50,000 and $400,000, or continue paying for unlimited coverage through the Michigan Catastrophic Claims Association, a fund that helps supports seriously injured accident victims.

Insurance officials argue that 95% of all medical claims stemming from auto accidents are for less than $50,000. Of course, if you are among the 5% that have serious injuries and no coverage, you can lose everything.

Michigan residents would end up footing the bill when motorists with too little medical coverage are hurt in serious car accidents. However, the insurance industry would benefit as these higher costs are shifted to patients' families, health care insurers and ultimately, taxpayers.