A key component of a no-fault auto insurance system is reducing costs by restricting the ability of injury victims to sue. As a result of ambiguous statutory language and interpretative court rulings, Michigan’s no-fault system effectively functions without that key component. It should be noted, however, that this issue could be positively affected by other reforms already mentioned. For instance, fee schedules, negotiated rates and required third-party reviews will each, if enacted, reduce the number of PIP lawsuits as provider bills will be less likely to be disputed.

An alternative may be an internal review process with appeal procedures similar to that used by private health insurance plans like Blue Cross Blue Shield. In addition, before any PIP suit is commenced some form of alternative dispute resolution should be required —especially alternative dispute resolution in the form of mediation, which has proven to be a very successful means of settling cases once they have been filed in circuit or district courts.