Legislation aims to lower car insurance rates for all Michigan drivers           

State Rep. Bronna Kahle joined House colleagues this week in unveiling legislation repealing Michigan’s no-fault car insurance system to drive down costs for drivers, who now pay the highest average premiums in the nation.

The legislation continues benefits for everyone already receiving lifetime health care after a catastrophic traffic accident.  The eight-bill package eliminates the no-fault system and moves Michigan to a full tort system, similar to other states such as Ohio.

“Our car insurance is too expensive,” said Kahle, of Adrian, “Michigan’s unique no-fault system has led to the highest auto insurance rates in the country. The hard-working families and seniors in Lenawee County deserve relief.”

The plan continues the requirement that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages such as pain and suffering.

The legislation also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association (MCCA) until it is no longer needed. The MCCA system will be closed to new entrants.

Colorado abandoned its no-fault system in 2003. According to a 2008 governor’s study, the average car insurance premium in the state decreased 35 percent since the state moved to a tort auto insurance system. Michigan drivers could see greater savings by parting ways with its no-fault system, which is the only one in the nation mandating unlimited medical coverage.

The bill package, House Bills 4397-4404, has been referred to the House Insurance Committee.