A plan to fix Michigan’s broken no-fault car insurance system, supported by Rep. Mark Huizenga, today was signed into law.

The proposal will bring hundreds of dollars in savings to drivers in the greater Grand Rapids area through lower car insurance prices – offering personal injury coverage options, combating fraud and abuse and addressing medical costs.

“This was government at work for the people on an issue they asked us to solve in Lansing,” said Huizenga, of Walker. “On average, Michigan drivers pay the highest car insurance premiums in the country. We simply couldn’t continue with the status quo of rising costs and allow more and more money to come out of the pockets of hard-working Michigan residents and their families. A fix was sorely needed for them and I’m proud to have supported it.”

Mandated unlimited lifetime health care coverage through car insurance plans is a primary reason why costs are so high in Michigan. The new law 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. Some 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.

Non-driving factors such as zip codes, home ownership and educational level will not be used to set rates under the new law. To help rein in runaway costs that result from medical care providers charging more to treat car accident victims than other patients, a fee schedule will be established for medical providers and phased in over three years.

The plan was given immediate effect when signed, however many reforms will not be fully implemented until July of 2020. The fee schedule portion of the new law will be fully implemented in July of 2023.