Michigan’s New Auto Insurance Law and the Effects on Catastrophic Claim Victims

Since July 1st, 2021, 42 medical care facilities have shut down across the state. In home care from family was slashed to 56 hours a week, and medicare reimbursement is capped at 45%. Lawmakers had two years to contemplate the effects the auto insurance law change by Public Acts 21 & 22 would have on car accident victims.

Michigan passed the law change in order to lower the cost of premiums for drivers. But the safety net of being fully taken care of under Michigan’s previous auto insurance has been ripped away from those that need it most. The law was applied retroactively, potentially violating portions of Michigan’s state constitution, that protects contract terms agreed upon by two parties.

For Shannon Perkins, following an accident in Grand Rapids, she felt safe and cared for under the old law. But now that contract between her and the insurance company has been voided because of Public Acts 21 & 22. Forcing her and many other amputees, and families of victims with traumatic brain injuries, across the state to pay out-of-pocket expenses they could not prepare for.

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