For Immediate Release:
October 14, 2013

Contact: Nicole Bradshaw or
Jeffrey Guilfoyle

CRC Report Examines Medical Costs Associated with No-Fault

CRC’s new report, Medical Costs of No-Fault Automobile Insurance examines how Michigan’s no-fault auto insurance system is contributing to higher health care spending in the state and outlines a variety of policy options that could be implemented to reduce the insurance system’s medical costs.

Several factors are contributing to higher auto accident related medical costs in Michigan. Auto insurers pay higher prices than other payers for medical services and Michigan’s auto accident victims use more medical services than in other states. Michigan is also unique in that its insurance coverage is unlimited for the lifetime of the sustained injuries. Finally, Michigan’s Insurance Code ensures that auto accident victims have access to generous coverage, which provides a high quality insurance product, but undoubtedly causes it to be more expensive.

“Michigan auto insurance provides very generous and comprehensive health benefits. However, these benefits are costly. Options exist that may reduce the cost of the current auto insurance system while still preserving most or all of the current benefits,” said Nicole Bradshaw, a Research Associate with CRC.

Topics covered in the new CRC report include:

  • Medical costs associated with no-fault auto insurance in Michigan.
  • The main drivers of auto accident related medical costs in Michigan.
  • No-fault auto insurance policy reform options, how they could be implemented to reduce medical spending, and how they would impact major features of the state’s auto insurance policy.

“Rising health care costs are a concern for families, businesses, and governments,” said Bradshaw. “Looking at the reasons why auto insurance medical spending is higher in Michigan can help citizens and policymakers evaluate what the most equitable and effective solutions may be to reduce these costs while ensuring the safety of Michigan drivers.”

The full report is available at no cost on the Citizens Research Council’s website,

Founded in 1916, CRC works to improve government in Michigan. The organization provides factual, unbiased, independent information concerning significant issues of state and local government organization, policy, and finance. By delivery of this information to policymakers and citizens, CRC aims to ensure sound and rational public policy formation in Michigan. For more information, visit

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