Our mission is simple: protect Michigan working families and small businesses from paying more in annual costs that so-called “bad faith” legislation causes.
Why it Matters:
What is Bad Faith Legislation?
Bad faith legislation is bad for everyone. Michiganders are already struggling with the cost of everything—from gas to groceries—and homeowners, drivers, and small businesses could be saddled with significant cost increases if such legislation is enacted.
The Bottom Line: Bad faith legislation would open the litigation floodgates and force unnecessarily high settlements that line the pockets of plaintiffs' attorneys, while the cost of this litigation would likely be passed to consumers. Other states with similar laws have seen a dramatic increase in fraudulent claims and frivolous lawsuits, escalating costs for consumers and businesses in those states. Insurance fraud increases the cost of everything we buy and use. Bad faith legislation would make it far worse.
The only real winners in bad faith legislation are plaintiffs’ attorneys who would benefit at the expense of hardworking Michiganders.
Previously introduced bad faith legislation could create a potential cost to Michigan consumers of between $2.4 billion and $4.7 billion.
Such legislation could most dramatically impact Michigan’s 7.2 million drivers, whose auto insurance policies could skyrocket by nearly 40 percent.
