Will no-fault auto insurance reform save you money or cost you everything?

Two of Michigan's top republicans disagree

(WXYZ) - Two of Michigan's most prominent Republicans are fighting each other.  The battle is over a plan to reform Michigan's No Fault Auto Insurance System.

Governor Rick Snyder says Michigan is the only state in the nation to require unlimited lifetime medical coverage. He says due to this, you are paying too much for car insurance in Michigan.

The governor is now backing a plan to reform Michigan's no fault auto insurance system. Under his plan you would pay less, but if you were hurt in an terrible accident, your benefits would no longer be unlimited. They would be capped at $1 million.

"One man's reform is another man's bankruptcy," said Oakland County Executive L. Brooks Patterson.

Patterson is lobbying against the governor's proposed plan. 

You may remember that eight months ago he and his driver were in a terrible accident.  Patterson is still working to get back on his feet. His driver's injuries were life-changing.

"They talk about putting in a $1 million cap. My driver went through a million in 4 months.  He is now up to $2.4 million and the accident is only eight months old," said Patterson.

Patterson says their care was not covered by no-fault insurance, because they were on the job. Workers' Compensation has them covered. Still, he has seen how important such coverage is.

Patterson says the governor's plan is backed by insurance companies and the Michigan Catastrophic Claims Association because insurers would benefit most from this proposed legislation.

The governor's plan would do more than just impose a limit on benefits. It also would end the practice of medical providers charging auto insurance companies higher rates for procedures.

Plus, it would help the government get a better look at how insurance companies spend money when people are seriously injured in accidents.

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