By Rep. Bronna Kahle

As your representative in the Michigan House and our voice in Lansing, I know the high cost of car insurance is a top concern for drivers and their families across Lenawee County. That’s why I spent much of my first two-and-a-half years in office listening to your concerns and leading the way to a solution.

I’m thrilled to say the Legislature recently approved historic reforms to our state’s broken no-fault car insurance system. The new law is a big win for drivers who had been forced to wait decades for Michigan’s government to step up and deliver.

The need for reform is reinforced with the recent fee increase from the Michigan Catastrophic Claims Association. The fee increase – set independently from the Legislature – took effect July 1 but was announced in March, before our reforms were approved and signed into law. The MCCA fees are among the reasons approving reforms guaranteeing rate relief in state law was so important to me.

The reforms should end Michigan’s disastrous tenure as the state with the nation’s highest car insurance rates because drivers will no longer be forced to buy unlimited personal injury protection coverage. Michigan is the only state in the nation with this requirement – and that will soon change.

Starting in July 2020, Michigan drivers – for the first time in decades — will have choices on the PIP portion of their policies.  Seniors with retiree health coverage such as Medicare and those with health insurance policies that cover injuries suffered in car accidents could opt out of PIP altogether. Others could continue with unlimited coverage if they want, or choose coverage options of $500,000 or $250,000. A $50,000 option will be available for those on Medicaid.

All drivers are guaranteed lower rates no matter what coverage option they choose.

The new law also stops price gouging for medical services when the patient happens to be a car accident victim. Patients won’t be overcharged on their medical bills because a new fee schedule will be put in place to lower costs.

The solution also fights abuse and fraud in the car insurance system. Cracking down on frivolous lawsuits and fraudulent claims will drive down car insurance costs for all.

These reforms deliver a real, meaningful and long-lasting fix to Michigan’s car insurance system for our families, friends and neighbors.