Michigan has no-fault insurance because the tort liability system that preceded it harmed victims of car accidents, not helping them. Seriously injured victims were denied compensation or were systematically undercompensated. In 1978, the Michigan Supreme Court upheld the no-fault law, but said that if car insurance is mandatory, it must be available at fair and equitable prices. The law requires that all insurance companies that offer auto insurance in the state of Michigan be members of the MCCA.
No-fault insurance was a small national trend in the early 1970s, and many predicted that the system would lower auto insurance premiums, but the opposite eventually occurred. House Speaker Tom Leonard, R-Dewitt, said last month that expensive car insurance is one of the biggest problems Michigan faces and attributed the problem to high reimbursements for no-fault insurance that goes to hospitals and other medical providers. Michigan's no-fault auto insurance law requires drivers to include a minimum of PIP and PPI in their car insurance policies. As required by no-fault insurance, Michigan drivers must include a minimum amount of personal injury protection (PIP) and property protection insurance (PPI) in their auto insurance policies.