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Snyder Signs Bill to Increase No-Fault Insurance Recovery Cap

meddygarnet, Flickr

Governor Rick Snyder signed a bill Thursday increasing an at-fault driver’s liability to cover costs to repair or replace a vehicle.

House Bill 5362 increases the amount a no-fault insurance holder is eligible to collect from $500 to $1,000.

Under Michigan’s no-fault insurance law, drivers must purchase insurance if they want to cover damage to their vehicle in case of an accident, and they have a choice of different collision coverage options and various levels of deductibles. Depending on the choice of coverage, they might still be required to pay a portion of their damages, even if they are not at fault in an accident. These drivers have the right to sue an at-fault driver in Small Claims Court to recover these personal costs.

“It is important we update state policies to reflect changes across our state. The $1,000 recovery limit will help better cover repair damages,” Snyder said.

The bill is now Public Act 158 of 2012. Visit www.legislature.mi.gov for more information on this bill.

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