After decades of growing dissatisfaction with Michigan’s car insurance system, the Michigan Legislature recently came together to approve a bipartisan solution that will lower rates for drivers in mid-Michigan and beyond.

First, I want to take a moment to highlight just how momentous this vote was. Reforming car insurance is something that has eluded the Legislature for more than 30 years. The minimum number of votes needed to enact a change – 56 in the House, 20 in the Senate, plus the governor’s support – has consistently eluded every other piece of legislation introduced to reform Michigan’s no-fault system in the past. Seeing the overwhelming support our bipartisan solution ultimately gained makes me incredibly proud to play a part in the process.

The new law is a product of legislators working across party lines to reach a compromise and end Michigan’s dubious distinction as the state with the most expensive car insurance rates in the nation. It’s not perfect – a true compromise never is – but this plan will lead to a better Michigan. Many families will save hundreds of dollars or more each year as a result.

The biggest factor contributing to our expensive car insurance rates was Michigan’s status as the only state mandating drivers to purchase unlimited lifetime health care coverage through their car insurance. The new law will provide more affordable options while allowing those who currently use the unlimited coverage to keep it, and those who want it in the future to continue buying it.

Starting in July 2020, many drivers will be able to opt out of personal injury protection altogether, including seniors with retiree health coverage such as Medicare and those with health insurance policies that cover car accident-related injuries.

Others will be able to continue with unlimited coverage or choose limits of $250,000 or $500,000. A $50,000 option will be available for drivers on Medicaid.

A fee schedule will be established, reining in runaway costs that result from medical care providers charging far more to treat car accident victims than other patients.

Non-driving factors – such as zip codes, educational level and credit scores – will no longer be used to determine rates. However, drivers living in areas within the state having lower claims can continue to benefit with lower premiums than higher claim areas.

An anti-fraud unit will help crack down on those abusing the system, helping lower car insurance rates even further.

Most importantly, the new law guarantees lower rates for all drivers and implements lasting reforms that will control costs now and in the future. This is critical for senior citizens on fixed incomes and working families living paycheck to paycheck. No one should have to choose between insuring their car and putting food on the table. Businesses that utilize company vehicles in our state will also benefit because it will now be more affordable to deliver products and services in Michigan.

The high cost of car insurance of Michigan is the most common issue I hear about from people when I’m out in our community. Providing rate relief was my top legislative priority as your state representative, and I’m thrilled to be able to report it is now becoming reality.

###