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Rep. Hauck: Isabella and Midland county drivers one step closer to rate relief
RELEASE|May 24, 2019

Plan fixing no-fault insurance system heads to governor’s desk

State Rep. Roger Hauck, of Union Township today cast a pivotal vote in favor of a proposal that brings savings to Michigan drivers through lower car insurance rates.

The plan, which needed additional legislative approval after an initial House vote earlier in the month, guarantees lower rates for drivers in Michigan. Senate Bill 1 mends the state’s broken no-fault system by offering personal injury coverage options, combating fraud and abuse and addressing medical costs.

On average, drivers in Michigan pay the highest insurance rates of any state in the country. The average premium in Michigan is also twice as high as in neighboring states.

“We can look around at other states from central Michigan and see that the no-fault model is not an enviable one. Otherwise, other states would be rushing to adopt it,” Hauck said. “It’s driving up costs for drivers and making our state a less attractive place to work, live and raise a family. I’m pleased to have worked with the Legislature to take the lead on this issue and bring rate relief to drivers.”

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 – all while providing more affordable options. For the first time in Michigan’s history, drivers will be able to have a choice in their level of PIP coverage.

“Choice is a big factor in this plan because it will help people save,” Hauck said. “One of the biggest concerns shared with me by people when I began working with our Republican Action Plan committee toward the end of the last legislative term was the high price of car insurance and the locked in nature of the system. I wanted to prioritize that burden facing our residents and giving people choice allows them to evaluate and select a level that best fits their budget.”

Hauck played an integral role as the final version of the bill was formed, offering a substitute that implemented elements of an existing House plan. SB 1 will now head to the governor’s desk, where it is expected to be signed.

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