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D-Insurance: an “f” Grade Idea

Michigan Personal Injury Attorneys > Blog > D-Insurance: an “f” Grade Idea

by Victor Balta

Over the past few weeks, you may have heard new radio ads extolling the so-called virtues of a new plan to reform Michigan’s No-Fault System called “D-Insurance”. These ads cite the high number of hard-working people who are unable to afford car insurance and are forced to illegally drive because they cannot afford it. But the ads take a sinister twist – and surprisingly blame the medical industry for the high rates of insurance. Radio ads claim that hospitals charge five times the cost of an MRI for auto-patients as compared to others. The D-Insurance Facebook page quotes a similar statistic: “Hospitals and medical providers are charging car accident victims 200-500% for the same care other patients are receiving.”[1]

Unsurprisingly, these ads place no blame on the automobile insurance industry for the current state of affairs. These publications make it seem as though automobile insurers are helpless at the hands of an overwhelmingly powerful and corrupt medical system. But these ads do not mention that automobile insurers can and regularly do negotiate bills with hospitals and medical care providers. Throughout my practice, I regularly see reductions in medical bills obtained by auto carriers. Automobile insurers also have significant tools at their disposal including contesting whether a medical expense is covered as “reasonable and necessary”, whether a patient has reached “maximum medical improvement”, or has a “pre-existing condition” which is currently the cause of their pain, suffering, and need for medical care. The auto insurance industry is far from helpless and has just as much incentive to seek profits as the medical industry – should we further empower them?

Although many D-Insurance ads claim that a reduction in premiums will necessarily follow if the plan is adopted, it can be argued that the loss of benefits may not be matched by a corresponding drop in premiums. Some online studies indicate that although Michigan is currently the highest for average automobile insurance premiums, many states trail closely behind including several states which do not have a No Fault scheme.[2] As with all issues, in-depth thought is required before taking action. It is important to remember that the insurance companies have control over premiums. For these reasons, if you have been injured in a car accident, it may be unwise to place blind faith reliance on your insurance company. Adequate representation may be necessary to obtain a fair value for your claims and ensure that all of your benefits are paid. For a FREE telephone consultation regarding auto accident injuries, please call contact Vince Colella or Victor Balta at Moss & Colella, P.C. at (248)-945-0100. Nothing in this article should be construed as creating an attorney-client relationship or advising as to the viability of any legal claim.

[1] D-Insurance, Facebook (October 11, 2015),

[2] Barabara Maraquand, Car Insurance Rate by State – 2015 Edition, Insure, See also E-Coverage, What Is No Fault Auto Insurance and Which States Have It,

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