After decades of growing discontentment with the state’s no-fault system, bipartisan car insurance reforms supported by Rep. Ben Frederick – lowering costs for all Michigan drivers – were signed into state law this week.

Frederick – who helped lead a special committee tasked with lowering car insurance rates in Michigan – joined his colleagues in the Legislature last week to approve the bipartisan solution. The reforms give drivers more choice on personal injury protection (PIP) coverage, maintain the best life-saving medical benefits in the country, stop price gouging on medical services for car accident victims and combat fraud within the system. Michigan motorists, depending on the PIP coverage level they choose, could save hundreds of dollars or more each year.

“After many years of partisan gridlock, the willingness of both the Legislature and the governor to work together and find a solution demonstrates that bipartisanship still exists,” said Frederick, who serves on the House Select Committee on Reducing Car Insurance Rates. “Much consideration went into this new law to ensure Michigan families can save a significant amount of money, while protecting drivers and their loved ones injured in auto accidents. I commend all the work that has been done to pass these historic reforms and am pleased I was able to be part of the deliberative process.”

Michigan has had the most expensive car insurance in the nation mainly because it was the only state mandating unlimited lifetime health care coverage through car insurance, with no corresponding cap on what medical providers may charge accident victims. The new law will provide more affordable options for motorists while allowing those who currently use the unlimited coverage to keep it, and those who want it in the future to continue buying it.

Beginning in July 2020, many drivers will be able to opt out of personal injury protection altogether, including seniors with retiree health coverage such as Medicare and those with health insurance policies that cover car accident-related injuries. Others will be able to continue with unlimited coverage or choose PIP limits of $250,000 or $500,000. A $50,000 option will be available for drivers on Medicaid.

Other reforms include:

• A fee schedule to rein in runaway costs that result from medical care providers charging far more to treat car accident victims than other patients.
• An anti-fraud unit will help crack down on those abusing the system, helping to further lower car insurance rates.
• Non-driving factors, such as ZIP codes, home ownership and educational level, can’t be used to determine rates.

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