State Rep. Tommy Brann today joined his colleagues in approving a bipartisan plan to significantly lower car insurance rates for drivers across the state.
The House overwhelmingly voted to approve legislation guaranteeing lower rates by giving drivers more choice on personal injury protection coverage, stopping price gouging on medical services for car accident victims, and combating fraudulent claims.
Brann, of Wyoming, said the bipartisan solution is designed to end Michigan’s long tenure as the state with the most expensive car insurance rates in the nation.
“This solution addresses the longstanding problems with Michigan’s auto insurance system while still giving people the ability to purchase coverage that provides unlimited lifetime health care if they are injured in a car crash – an option I fought hard to keep,” Brann said. “That is the coverage option my wife and I will be selecting, and I hope others will seriously consider it as well.”
Michigan’s costs are high largely because it’s the only state mandating unlimited lifetime health care coverage through car insurance. The bipartisan reform 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.
Under the plan, people who have qualified health or accident insurance (Medicaid, Medicare or private) are not required to purchase personal injury protection (PIP) coverage and may choose not to do so. However, the plan approved today contains three protections Brann worked to include:
- People must be presented with forms approved by the Department of Insurance and Financial Services explaining the benefits and risks of the options available to them.
- Drivers who opt out of unlimited PIP coverage will be given 30 days to purchase PIP coverage if they lose their qualifying health insurance. If they are injured during that time, they would go to assigned claims and receive up to $2 million in coverage rather than the minimum PIP choice. Other individuals who go to assigned claims receive the $250,000 in coverage.
- Each time an auto insurance policy is renewed, providers must ask drivers if their health care coverage has changed. If it has, this will give the clients a chance to change their PIP coverage.
The plan should soon head to the governor for her expected signature.