House approves overhaul reforms after decades of gridlock

The Michigan House today approved a landmark plan to fix our state’s much-maligned car insurance system and reduce rates for all Michigan drivers, state Rep. Lynn Afendoulis announced.

Afendoulis voted in favor of a plan that has features designed to end Michigan’s long-standing tenure as the state with the costliest car insurance rates in the nation.

“This historic reform has been over 40 years in the making, and I’m honored to have played a role in making sure it finally happened,” Afendoulis said. “The reality is that West Michigan families need more affordable car insurance rates, and that’s what this plan provides.

“The reality also is that key players in the health care arena – hospitals, acute care facilities and insurers, among them – will be critical in the success of this reform and we have been encouraged by their willingness to participate in the solution,” Afendoulis said. “Change this big creates uncertainty and having so many at the table helps us ensure that we have created the best solution possible and that it will be implemented in the best manner possible.”

Afendoulis has been a lead advocate for reforms and was also a member of the House Select Committee on Reducing Car Insurance Rates Committee – the special panel solely dedicated to crafting a long-lasting solution that cuts down drivers’ rates.

Michigan’s costs are high largely because it’s the only state mandating unlimited lifetime health care coverage through car insurance. The plan allows those currently using the coverage to keep it, and those who want it in the future to continue buying it – while providing more affordable options.

The plan:

• Guarantees lower personal injury protection rates for all Michigan drivers;
• Gives drivers a choice on car insurance policies;
• Stops price gouging on medical services for car accident victims; and
• Combats fraudulent claims to help lower costs

The sweeping legislation now advances to the Senate for consideration.