Friday, 15 February 2008
Michigan Legislature Considers Bill For Senior’s Auto Insurance
A committee in Michigan’s House of Representatives approved a bill yesterday that would affect auto insurance for any driver over the age of 65, reported the Detroit Free Press.
Michigan is the only state in the country where all drivers must have full and unlimited medical coverage — also called Personal Injury Protection (PIP). The Wolverine State also has no-fault auto insurance, where all drivers are covered regardless of who is at fault in an accident.
The measure approved by the House committee would allow seniors to opt out of the unlimited medical coverage.
If passed, seniors could save as much as 40 percent on their auto insurance premiums, according to a study conducted by State Farm.
“People eligible for Medicare should not be required to buy additional medical insurance. That’s like requiring all people covered by Medicare to buy a full health care policy from Blue Cross,” said a lobbyist for auto insurer, AAA Michigan.
Even though Americans over 65 years old are eligible for Medicare, some lawmakers aren’t sure if Medicare will provide coverage for injuries in auto accidents. It’s not certain if coverage would be denied because of Michigan’s unlimited medical care law.
They suggested waiting to find out what medical costs Medicare will cover.
Proponents of no-fault auto insurance and unlimited medical care contend the laws protect drivers from insurance companies denying coverage. But they weren’t fully opposed to allowing seniors to opt out of unlimited medical coverage.
The bill will soon be considered by the full House.
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