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Court hears challenge to key aspect of Michigan auto no-fault law

Catastrophically injured auto accident survivors at the state Capitol, asking legislators to fix the no-fault law that's depriving them of care.
Emma Winoweiki
Catastrophically injured auto accident survivors at the state Capitol, asking legislators to fix the no-fault law that's depriving them of care.

The Michigan Court of Appeals heard arguments today in a class action lawsuit over the state's auto no-fault law. The suit says the law should not apply to people who were injured before 2019.

This case has big implications. It applies to more than 18,000 people who were catastrophically injured in car crashes prior to the 2019 auto no-fault law. Now, they're losing care they've had sometimes for decades, landing in hospitals, nursing homes, even dying. That's because the law set payments for care so low, it often doesn't cover providers costs.

Plaintiffs told the Court those low payments violate survivors' contract rights — because their insurance policies at the time promised them reasonable payments for care. But attorneys for insurance companies say whatever benefits the state legislature gave drivers under the old no-fault law, it can take away under the new law.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Radio. She began her career at Michigan Radio as an intern, where she was promptly “bitten by the radio bug,” and never recovered.