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7/31/23 - MSC Strikes Down Changes to Car Insurance Law

Monday, July 31, 2023 at 4:18 PM

Michigan residents catastrophically injured in car crashes prior to changes to Michigan's no-fault insurance are entitled to remain covered. Image courtesy of Iphoto. 7/31/23.

The State's Supreme Court says changes enacted by the 2019 law were not intended to apply to those who were already covered.

Some 15-thousand residents who were catastrophically injured in car accidents are entitled to compensation, despite an overhaul of the state’s no-fault insurance laws.  

The Michigan Supreme court ruled cost controls instituted under the change did not apply retroactively to those injured. This means those who were already injured prior to the law going into effect, were not included in the laws intent.

Supporters of the ruling, including the Consumer Protection Coalition Fighting for Fair Auto Insurance Laws, said that today’s Michigan Supreme Court decision in the landmark Andary v. USAA et al case represents a major win for crash survivors and the providers who care for them.

 “This decision marks the beginning of the end of this nightmare for more than 18,000 crash survivors and their loved ones,” said CPAN President Tim Hoste. “The Supreme Court has issued a strong affirmation that accident victims who were injured prior to the passage of the new law cannot have the rights and benefits they purchased through their auto insurance premiums stripped away by this legislation. This is an enormous victory for the rights of crash survivors, and we want to thank all the advocates who fought along with us to make this day a reality.”

The Insurance Alliance of Michigan has earlier opposed changes to the law saying it would lead to higher medical costs, including overcharging for some services.

“Michigan’s new auto no-fault law has been an across-the-board win for drivers and small businesses throughout the state who are saving hundreds and even thousands of dollars a year on their auto insurance premiums,” said Erin McDonough, executive director of the Insurance Alliance of Michigan.

Governor Grectchen Whitmer signed the changes into law in 2019.

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