Michigan families struggle to pay auto insurance premiums
Auto insurance costs are significantly higher than other states because of inflexible mandates and the resulting expenses. Legislative inaction to address skyrocketing costs and an inefficient claims process must be remedied to help all residents of Michigan.
House Republicans have focused on identifying the cost drivers that have made Michigan’s auto insurance premiums for medical coverage skyrocket, increasing more than 51 percent in the past 10 years. By creating a fraud authority to identify and prevent abuse within the system, streamlining the reimbursement process for claims paid to health providers and offering a low-cost option to those who normally cannot afford to carry a policy, Michigan residents will be guaranteed a minimum 10 percent savings per policy for two years after enactment of this new law.
Michigan’s no-fault insurance system will remain the same, with everyone who is injured in an auto insurance accident eligible for up to $10 million in health care benefits claims. The next highest coverage in the nation is New York state, with a $50,000 cap.
Even with the reforms we are proposing, Michigan’s coverage will remain 200 times more generous than the next highest state. Accident victims will have access to the best treatments, with guaranteed savings across the board for policyholders.
For the last three years, we have worked to make Michigan a state that works for the people. A state in which things run effectively.
A state where taxpayers can count on cost-efficiency where spending is necessary. Michigan’s economy is alive and well, growing each day. The next step is to give residents the ability to keep more of their hard-earned money in their bank accounts.
Enactment of each of the reforms in this proposal will generate savings for policyholders that equate to $1.5 billion in savings for Michiganders over a two-year period.