Gov. Rick Snyder Signs Bill to Increase No-Fault Insurance Recovery Cap in Michigan

Submitted by Gov. Rick Snyder's Office

LANSING, Mich. – Gov. Rick Snyder signed a bill increasing an at-fault driver’s liability to cover the costs to repair or replace a vehicle on Friday.

House Bill 5362, sponsored by state Rep. Cindy Denby, increases the amount a no-fault insurance holder is eligible to collect from an at-fault driver 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, drivers 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.