State Rep. Beth Griffin today noted that historic car insurance reforms have been signed into Michigan law, guaranteeing lower rates for drivers in Van Buren and Kalamazoo counties.

The reforms – approved earlier by Griffin and the Legislature – give drivers more choice on personal injury protection coverage, combat fraudulent claims and take steps to rein in medical costs. Many Michigan families will save hundreds of dollars or more each year through the reforms.

“The high cost of car insurance was a top complaint I heard everywhere I went in Southwest Michigan,” Griffin said. “This is a great example of the Legislature listening to its constituents and delivering a solution – overcoming decades of gridlock to simply do the right thing for Michigan drivers and their families.”

Michigan has had the most expensive car insurance in the nation mostly because it’s the only state mandating unlimited lifetime health care coverage through car insurance. The revised law will provide more affordable options while allowing those who currently use the unlimited coverage to keep it, and those who want it in the future to continue buying it.

Starting 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.

A fee schedule will be established for medical providers, reining in runaway costs that result from medical care providers charging far more to treat car accident victims than other patients.

Non-driving factors such as zip codes, educational level, and credit score can’t be used to determine rates.

An anti-fraud unit will help crack down on those abusing the system, which should help lower car insurance rates even further.

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