United States District Judge George Steeh has stated that the no-fault system is “shameful” and that state officials need to “address what really is a shameful situation as it relates to the cost of our insurance coverage. There is no denying that auto insurance rates in Michigan are out of control. The question is who is to blame and what are the possible solutions.
First off, I want to say that there a few large law firms in Detroit that is giving the rest of the legal community a bad name. Some shady attorneys do everything they can to get a new case including bribery, trickery, fraud, and unlawful engagement. This has been going on for years yet nothing has been done. Attorneys will recommend their injured clients visit a special chiropractor who will charge exorbitant fees in an attempt to inflate the damages of the case. This is nothing unusual in Detroit, yet it’s causing rates to increase statewide.
Many lawmakers are pushing to cap no-fault benefits, but this simply isn’t a viable solution. No fault only works when everyone participates and shares the extra benefits and costs. When that doesn’t happen, you see the prices Michigan is currently dealing with.
In our opinion, the real solution is just get rid of no-fault law completely. Michigan has showed that’s impossible to stop the shady tricks and tactics that both large car accident firms utilize and the doctor networks that are also playing a major part if not the largest contributor. The auto insurance companies don’t want to eliminate no-fault as they would rather have their cake and eat it too with capped no-fault law.
This is going to be a very hot topic in Michigan for 2019 and there will be plenty of updates to keep you informed of the latest changes to the auto accident legal environment.