Legislator: Choice for Michigan drivers is essential to lowering costs

State Rep. Mark Huizenga, of Walker, joined his House colleagues today in giving legislative approval to a proposal that brings lower car insurance prices to residents and families in the greater Grand Rapids area.

The plan guarantees lower rates for all drivers in Michigan, mending the state’s broken no-fault system and reducing what currently is the highest average car insurance premium in the nation. The average premium is also twice as high as in neighboring states. The bill gives drivers a choice on car insurance policies, stops price gouging on medical services for car accident victims and combats fraudulent claims to help lower costs.

“Choice is a very basic principle of a free market system, but that’s not the system we have in place,” Huizenga said. “Michigan drivers are locked into paying mandated coverages that offer peace of mind, but they may never use them. They’re sick of seeing their car insurance costs jump every year when they have other financial responsibilities and may be living paycheck to paycheck or on fixed budgets. They’ve called on us to provide them with significant rate relief and we’ve delivered a proposal to the governor’s desk that accomplishes that.”

Michigan’s costs are high largely because it’s the only state requiring drivers to purchase 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 – while providing more affordable options that will save residents more of their hard-earned money.

Senate Bill 1 will move to the governor for review and possible signature.