When there is an auto accident, people who have been injured or lost a loved one count on auto insurance to cover for medical expenses, care, property loss and more. However, Michigan recently put into effect a new law about no-fault auto insurance. People who would have been covered before the changes have been negatively impacted by the new law and protests have erupted. When there is an accident with injuries, it is important to understand no-fault insurance coverage and how to address the challenges related to it.
Protestors seek help due to problems with new insurance law
A Michigan State Senator was confronted with protests about failure to act in helping locals who claim to have been harmed by the new no-fault insurance laws in the state. The laws went into effect at the beginning of July. According to the protestors, they have faced limits on medical care. The law states that medical services that are not provided under federal Medicare law are covered for up to 55% of what it was in 2019. There is a cap of 56 hours each week in which family members can provide care to injured loved ones and be compensated for it.
An estimated 18,000 people in the state get medical coverage through no-fault auto insurance. The new law spurred problems with people receiving payment and even knowing what they are entitled to. This has led to major financial challenges that are compounded by the ongoing national crisis damaging people’s work status, income and ability to pay basic expenses.
Anecdotally, family members say the new law has radically downgraded the medical benefits they can get. The mother of a 30-year-old woman who used insurance-related transportation can no longer do so, causing her to miss treatments for her injuries. Another said she has been caring for her injured brother for 14 years since a car crash. After disputing with the insurer for coverage, the woman quit her job to care for him. With the cap on payments to caregivers, she said she has lost significant financial assistance.
Insurance needs to be understood after an auto accident
People who were in an auto accident in the past and are facing problems because of the new no-fault laws and those who were recently in an accident and are unsure of what the future holds should be aware of their available options. No-fault insurance and what it covers could be critical when seeking compensation for the recovery process. To address these issues and to know what can be done, it is wise to have a grasp on the law and to seek assistance with how to proceed with a case.