Legislator: Choice, protections part of dedicated efforts to save drivers money

State Rep. Aaron Miller, of Sturgis, today cast a historic vote to bring lower car insurance prices to residents and families in Southwest Michigan, joining House legislators in approving a plan to reform Michigan’s broken no-fault system.

The plan guarantees lower rates for all drivers in Michigan, 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 such as Indiana. The bill offers personal injury coverage options, fights fraud and abuse, and addresses medical costs.

“Finally,” Miller emphatically said after the vote. “Finally, after literally decades of gridlock, we’re going to be giving people some real rate relief and putting people’s hard-earned money back in their pockets. The out-of-control status quo has hit border communities the hardest. Workforce talent is crossing state lines more than ever to escape crushing premiums. I can’t stress enough how much our state and local economies will benefit when hard-working Michigan residents don’t have to choose any more between buying car insurance and putting food on the table. This is a true game-changer and I really think it’s just the start of driving down costs for drivers. Today is a happy day.”

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

• Guarantees lower rates on the personal injury protection portion of policies. It would result in a 10-percent reduction within the PIP portion of bills for those buying unlimited coverage, a 30-percent drop for drivers choosing $500,000 in coverage, a 60-percent reduction for those purchasing $250,000 in coverage, and an 80-percent drop at the $50,000 coverage level.

• Allows seniors with retiree health coverage such as Medicare, and those with health insurance policies that cover car accident-related injuries, to opt out of PIP coverage;

• Establishes fee schedules to end the practice of charging far more to treat car accident victims than other patients;

• Cracks down on fraud and abuse by creating a fraud task force;

• Provides more financial oversight of and transparency within the Michigan Catastrophic Claims Association;

• Sets reasonable limits on compensation for attendant care contracts; and

• Helps the state ensure insurance companies charge fair rates, while addressing attorney fee settlements and significantly reducing litigation.

The sweeping legislation now advances to the Senate for consideration.