By state Rep. Doug Wozniak, of Shelby Township

While it was no easy feat, the state’s much-maligned no-fault car insurance system is now undergoing an extreme makeover.

Michigan’s no-fault structure was conducive to rampant fraud and skyrocketing costs. These problems – along with forcing Michigan drivers to pay the highest car insurance premiums in the country, more than double the national average – paved the way for landmark reform.

Drivers weren’t just asking for change, they were demanding it.

As your state representative, I listened to your calls. I cast my vote for a bipartisan solution delivering tangible rate relief to the more than 7 million drivers in Michigan. The plan has been signed into law and takes effect this coming July.

The new law:
• Guarantees lower rates for all Michigan drivers;
• Give drivers a choice on their policies for the first time in decades;
• Stops price gouging on medical services for car accident victims;
• Combats fraud; and most importantly
• Maintains the nation’s best medical coverage.

The new law is a great first step – and already working. The Michigan Catastrophic Claims Association has recently announced it will reduce the annual per vehicle assessment by $100 beginning in July. That’s down from $220 per vehicle – a 55-percent savings and a direct result of the new law.

This is only the beginning of savings Michigan drivers will see. Because more work can – and will – be done to deliver even further savings.

I have introduced a pair of plans aimed at providing more consumer protections and keeping the unlimited medical coverage option more affordable – and attractive – for Michigan families.

The first proposal will allow insurers to offer options with higher deductibles and reduced premiums for consumers purchasing an unlimited personal injury protection (PIP) benefits plan. Motorists would be able to choose deductibles in increments of $1,000 – the higher the deductible, the greater the savings on car insurance premiums

Although drivers who opt to keep unlimited coverage when the new law takes effect in July will see a guaranteed savings of 10 percent on the PIP portion of their policies, this may not be enough savings to keep the unlimited option attractive to drivers in their families.

It couldn’t be more important that we enhance our recent reforms by allowing consumers who purchase the unlimited benefits plan to see additional savings beyond the mandatory 10-percent rate reduction. Making the unlimited PIP coverage level more attractive to drivers will help ensure more families across Michigan have access to live-saving benefits and are adequately covered in a catastrophic accident.

The second proposal would create a board of physicians to provide oversight of the independent medical examination process for car accident victims claiming personal injury benefits.

The “No-Fault Independent Medical Examination Board” would be within the Department of Insurance and Financial Services, and members of the board would be appointed by the governor. Physicians appointed by the governor would use a random selection process to appoint other doctors to conduct examinations of patients who have suffered injuries in a car accident.

The purpose behind the board would be to ensure the independent medical examination process is truly independent, transparent and fair, adding much-needed consumer protection for Michigan drivers.

As I’ve echoed time and time again, I am committed to leaving no stone unturned on no-fault reforms. Beginning in July 2020, Michigan drivers will enjoy substantial savings within their car insurance policies. But make no mistake, there are still viable solutions out there that should be considered as a part of a broader solution to provide even greater savings. I will not stop advocating for them until they come to fruition.

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