Home » Excessive court docket will not block ruling nixing key elements of state’s auto insurance coverage reform

Excessive court docket will not block ruling nixing key elements of state’s auto insurance coverage reform

Lansing — The price of auto insurance coverage in Michigan might enhance subsequent 12 months after a court docket ruling blocked price controls within the state’s 2019 no-fault reform legislation from being enforced on medical suppliers.

A Michigan Courtroom of Appeals determination blocking the state’s auto insurance coverage reform legislation from being enforced on people injured previous to the legislation’s 2019 passage will stay the legislation of the state for no less than the following six months, the Michigan Supreme Courtroom ordered Thursday.

The excessive court docket denied a movement from auto insurance coverage firms to remain or quickly block the August appellate determination that stopped the 2019 legislation’s mandated price cuts on providers offered to people injured in catastrophic crashes earlier than the passage of the legislation.

However the Supreme Courtroom agreed to take up the case and scheduled oral arguments for six months from now in March.

The authorized wrangling will lead to a $48-per-vehicle enhance within the annual charges drivers get charged for catastrophic medical protection, beginning July 1, 2023, in accordance with the auto insurance coverage trade.

The rejection by Michigan’s highest court docket strikes an enormous blow to auto insurers, which had been hoping for a keep whereas an attraction of the case was heard. The insurance coverage firms have warned the appellate court docket’s determination would stifle any progress the state has made in reducing Michigan’s highest-in-the-nation automobile insurance coverage prices.

“That progress is in jeopardy after activist judges ignored legislative intent and the precise statutory language, and substituted their very own interpretation,” stated Wendy Block, vice chairman for enterprise advocacy and member engagement for the Michigan Chamber of Commerce.