Misleading insurance industry mailer encourages drivers to nix auto no-fault

Lansing – The Coalition Protecting Auto No-Fault (CPAN) today warned Michigan drivers not to be intimidated by letters from their auto insurer urging them to support changes to the state’s auto no-fault insurance system.
 
“Insurance companies haven’t been able to get lawmakers to buy into their lies, so now they’re going straight to the public with their misinformation,” said CPAN President John Cornack.  
 
Letters sent recently by Allstate and other insurance companies included a misleading brochure designed to push drivers into accepting legislation that will significantly reduce care for injured people.
 
Among the misleading statements is the assertion that Michigan law requires seniors to have personal injury protection coverage as part of their auto insurance policy “even though Medicare would pay for their medical costs.” The brochure fails to tell consumers that Medicare does not cover many services that would be required for someone involved in an auto accident, such as ambulance and emergency room care, in-patient rehabilitation or access to specialists like plastic or neurosurgeons.
 
“Companies like Allstate like to tell customers they are in ‘good hands’ but those same hands are being used to bully policyholders into withdrawing support for a law that the people of Michigan have consistently upheld in exchange for one that would drastically reduce the level of care for our state’s most seriously injured people.”
 
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Fact Checking the Michigan Insurance Industry Brochure