Impact of car insurance overhaul, cost savings to be felt across Michigan

Categories: LaFave News

There’s no question that our awful no-fault car insurance system required serious changes.

Skyrocketing car insurance premiums due to decades of inaction by elected officials affect every driver from Detroit to Dickinson County. They are why many residents have already packed their bags and moved elsewhere to escape the burdensome costs. This only hurts the momentum of our state and local economies.

I, like many drivers across the state, was sick of my concerns being ignored while state government remained silent and special interests profited off the backs of hard-working Michiganders. That’s why I came to Lansing in 2016 with the mission of putting these days behind us and welcoming our neighbors home by delivering a real, meaningful solution to the nation-high costs of car insurance hurting every household’s budget. I made car insurance reform my top priority because it was the top priority for people in the Upper Peninsula.

After three years of leading no-fault reform efforts, including serving on the House Select Committee on Reducing Car Insurance Rates, I was able to cast my vote to help get a long-overdue, impactful car insurance reform plan approved in the Legislature.

The bipartisan solution was derived from an open and inclusive deliberative process. It included months of research and input from thousands of drivers and their families. I commend the governor for signing these smart reforms that will guarantee cost savings for every motorist. Families will see hundreds of dollars per year in rate relief and as a whole, drivers across the state will see billions of dollars returning to their wallets.

Beginning in July 2020, drivers will have the freedom to choose a personal injury protection (PIP) coverage plan that best meets their financial needs for the first time in Michigan’s tenure of being a no-fault state. Seniors with retiree health care plans and individuals with health policies that cover injuries from car accidents will be able to completely opt out of PIP coverage. Drivers interested in continuing to purchase unlimited PIP coverage can continue to do so and still see savings.

The new law also ramps up protections against fraud and establishes a much-needed fee schedule to rein in runaway costs medical providers charge car accident victims.

This insurance overhaul is not perfect, but it’s an excellent start that will lead to a better Michigan. Every driver, no matter where they reside across the state, will feel the impact of the cost savings guaranteed under this law.

This is a big win for the hard-working people of Michigan who have been forced to wait decades for state government leaders to deliver change that allows them to move forward. I listened and made it my number one priority. I kept my word and followed through to fix our broken car insurance system, while delivering relief for families, seniors and household budgets all over Michigan.