The Michigan House today approved a landmark plan to fix the state’s much-maligned car insurance system and reduce rates for all Michigan drivers, state Rep. Eric Leutheuser announced.

Leutheuser voted in favor of the plan to guarantee lower rates and give drivers more choice on personal injury protection coverage, stop price gouging on medical services for car accident victims, and combat fraudulent claims to help lower costs.

The changes are designed to end Michigan’s long-standing reputation as the state with the costliest car insurance rates in the nation.

“This reform is one of the main reasons I wanted to represent Hillsdale and Branch counties in the state Legislature,” Leutheuser said. “As a former car dealership owner, I heard about it from customers for years – and I know it is one of our state’s biggest problems. Car insurance is too expensive, and that has got to change.

“I have been frustrated at the lack of progress on this issue,” Leutheuser said. “But there is momentum now. It’s not just the No. 1 issue for me – it’s the No. 1 issue for a lot of people across the state. Our economy is recovering, but it won’t fully accelerate until we stop chasing people away with the highest car insurance rates in the nation.”

Michigan’s costs are high largely because it’s the only state mandating unlimited lifetime health care coverage through car insurance. The House-approved 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.

The sweeping legislation now advances to the Senate for consideration.

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