Coalition Protecting Auto No-Fault

Insurance industry not trusted to make auto insurance reforms
in the best interest of consumers

LANSING – According to results of a recent consumer survey, Michigan lawmakers may want to rethink proposed auto insurance reforms during the summer legislative break. More than 80 percent of those surveyed indicated the $10 per month in savings offered by HB 4612 for one year was not worth giving up lifetime auto insurance benefits.



“Michigan drivers understand that we have very good system for caring for seriously injured people,” said CPAN President John Cornack. “And it’s clear they would need to see real and lasting savings if they were to accept changes like those being proposed by the insurance industry.”

The online survey of 500 Michigan residents was conducted using Google Consumer Surveys. Individuals browsing the web see the survey along the side of search results, similar to a Google Search ad. Users only answer one question because each question is polled separately. Questions are displayed until an accurate sample is achieved. Responses are then aggregated and analyzed by Google. The relatively new online polling tool was deemed the second most accurate national poll in the 2012 presidential campaign by New York Times' statistician/polling expert Nate Silver.

The results come as the Michigan insurance industry is advocating significant changes to the state’s 41-year-old no-fault auto insurance system. House Bill 4612 would eliminate lifetime benefit coverage for auto accident survivors and impose several restrictions on the care that a catastrophically injured person can receive. In exchange, the bill would mandate a savings of about $10 per month for one year.

Research on similar legislation introduced in the 2011-12 state legislative session, and Colorado’s experience in changing from a no-fault to a tort auto insurance system, shows that capping auto injury coverage would result in tens of millions of dollars in increased costs to Michigan’s Medicaid system.

The increase in unfunded costs to Medicaid does not sit well with Michigan residents, according to survey. Nearly 88 percent of respondents said they do not support the increased costs to taxpayers that would occur as a part of the current auto insurance reform proposal. Similarly, more than 83 percent of respondents said they don’t trust the insurance companies to propose auto insurance reforms that are good for the people of Michigan.

“Once drivers and accident survivors take a look at the details of the bill, it’s very obvious to them that these changes benefit only insurance companies at the expense of everyone else -- and I think this poll is reflecting that,” said Cornack.
 
Methodology: Google Consumer Surveys was used to conduct an online opinion poll of 500 Michigan internet users representative of the general population. The survey was conducted June 10-12, 2013. Results are weighted by inferred gender, age and geography. Because questions are asked individually, a separate margin of error is provided for each question.
 
About CPAN: The Coalition Protecting Auto No-Fault is a broad-based coalition of consumer advocate groups, lawyers, doctors, hospitals and other health care providers working together to keep Michigan’s model no-fault insurance law intact. Learn more about CPAN by visiting www.CPAN.us