State Rep. Gary Howell today announced that historic car insurance reforms have been signed into law by Governor Whitmer, guaranteeing lower rates for drivers in Lapeer County.

The reforms – approved earlier by Howell and the Legislature – give drivers choices 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.

“I could not be more proud to be a part of this historic reform,” said Howell, of North Branch. “After decades of gridlock, we were able to work together and deliver a bipartisan solution that guarantees lower car insurance rates for families all across our state.”

Michigan has had the most expensive car insurance in the nation mostly because we have been 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 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 will no longer be used to determine rates. However, drivers living in areas within the state having lower claims (such as Lapeer County) can continue to benefit with lower premiums than higher claim areas.

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

“The adoption of these much needed reforms shows that much can be accomplished when we work together in a bipartisan spirit,” Howell said. “When we put aside petty partisan differences, the people win.”

###