Rep. LaFave weighs in on latest efforts to reduce Michigan’s car insurance rates

Categories: LaFave News

State Rep. Beau LaFave, of Iron Mountain, Thursday responded to the latest controversy regarding Michigan’s highest-in-the-nation car insurance rates.

Detroit Mayor Mike Duggan, along with eight motorists from across the state, filed a lawsuit earlier Thursday in U.S. District Court in Detroit deeming Michigan’s no-fault law unconstitutional. The group seeks fair rates for drivers statewide.

“The mayor of Detroit and I don’t typically see eye-to-eye, but when it comes to our unaffordable, ridiculously burdensome car insurance rates, I stand with him shoulder-to-shoulder,” said LaFave, who serves on the House Insurance Committee. “While I cannot comment on the premise of the lawsuit, I do want to make it clear that I stand ready at any time to finally deliver much-deserved relief for hard-working, Yooper families.”

Mayor Duggan joined LaFave in fall 2017 to publicly announce a plan that would lower car insurance rates by:

  • Giving drivers choice on their personal injury protection (PIP) coverage;
  • Exempting seniors with retiree health coverage from purchasing PIP to avoid duplicative coverage;
  • Establishing a fee-schedule to rein in out-of-control medical charges for auto accident injuries; and
  • Creating a fraud authority to crack down on fraud and abuse.

“Special interest groups and lawyers are cashing in while families living paycheck-to-paycheck are being taken advantage of,” LaFave said. “Michigan’s no-fault system is failing drivers, and the plan I sponsored last fall would have ended it. If it takes a lawsuit to do so, however, then so be it.”

LaFave also noted Michigan’s average full-coverage premium cost – nearly $2,400 per year – is more than $1,000 above the national average and twice as high as neighboring states like Wisconsin.