Last year, Michigan made updates to the Michigan insurance law. At the time, Michigan had the highest insurance rates in the country, but after the change, drivers could then choose to change their insurance to lower their premiums. Many chose to do just that, and now we’re seeing people reliant on the insurance payments for treatment receive notification that their treatment will soon discontinue.
Michigan’s Personal Injury Protection law (PIP), also known as first-party insurance, made Michigan's insurance rates so high. The law required Michigan drivers to carry unlimited protection for single-car accidents. This insurance level meant that people in a single-car accident received top-notch care for as long as necessary. With a smaller pool of premium payments, unlimited coverage for exiting patients may soon end. With the new changes in place, people receiving vital care must face their insurance company’s choice to discontinue their treatment.
Most would assume that these law changes wouldn't tangibly affect those already in treatment. The issue at hand, as it always is with insurance providers, is money. Without higher premiums coming in, they do not believe they can cover unlimited care for the injured.
As of right now, there are legislative efforts announced to fix the problem, but those have hit a wall. It’s hard to consider the future when your needed benefits are at risk. It does appear that the PIP changes intended to benefit consumers only helped insurance companies. That's why, whenever there is a personal injury claim, it is vital to pursue the damages as far as possible to hold these companies accountable.
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