The fight over no-fault auto insurance in Michigan could lead to higher premiums for all drivers next year.
It's part of the fallout surrounding the 2019 reform law that is now heading to the State Supreme Court.
Every driver who received a $400 auto insurance refund check last year will likely slowly pay it back with claims that insurance rates will go up starting in July.
The Michigan Supreme Court will rule on whether or not people catastrophically injured before 2019 will continue to get their medical expenses covered indefinitely.
So, how did we get here?
In 2019, Gov. Gretchen Whitmer rolled out a no-fault reform law. It set a fee schedule and cap on reimbursements not covered by Medicaid, impacting people who have been severely injured in a crash.
In August 2022, the Michigan Court of Appeals ruled it unconstitutional to cut payments of to people injured before 2019.
The state Supreme Court will now hear oral arguments in March 2023.
The decision is hitting everyone in their pockets with the Michigan Catastrophic Claims Association saying it will increase rates in July.
It could go up $48 a year for people who select no personal injury protection, or limited protection, and a 42% increase for drivers who want unlimited personal injury protection, going from $86 per year to $122.
The Catastrophic Claims Association says the rate increase is because it has a $3.7 million deficit because of the Court of Appeals ruling.
