State Rep. Aaron Miller today joined a bipartisan coalition to dramatically cut auto insurance costs for drivers in Michigan, who now pay the highest rates in the nation.
Miller supports legislation that will lower the cost of auto insurance in Michigan by offering motorists more coverage options, reining in medical costs and fighting abuse.
“Michigan’s current auto no-fault system simply is not working. It’s broken,” said Miller, of Sturgis. “Sky-high prices are literally driving people out of our state, a pain we feel sharply here on the border with Indiana. We’ve got to get our costs more in line with neighboring states so Michigan can be the best possible place to live, work and raise a family.”
Michigan’s average full coverage auto insurance premium cost – nearly $2,400 per year – is more than $1,000 above the national average and twice as high as those in neighboring states such as Indiana.
The new bipartisan plan continues benefits for Michiganders already receiving lifetime health care after a catastrophic traffic accident. The plan also gives motorists the option to continue to buy unlimited personal injury protection (PIP) coverage, or buy more affordable alternative coverage plans.
- Provides a guaranteed rate reduction for drivers who choose certain coverage plans alternative to the unlimited plan;
- Gives individuals the choice on the extent of PIP coverage as part of their auto insurance. Choice levels include $250,000, $500,000 or unlimited;
- Allows seniors age 62 or older with lifetime health care benefits the option to opt out of PIP coverage to avoid the current double taxation;
- Establishes fee schedules and attendant care limits to lower medical costs related to auto injuries;
- Helps the state ensure insurance companies are complying with state law, and creates a fraud authority to address fraudulent claims;
- Provides a state review of the Michigan Catastrophic Claims Association (MCCA) to make sure motorists are not overpaying for insurance; and
- Addresses attorney fee costs and unfounded lawsuits while eliminating attorney conflict of interests with medical providers.
“Our current system is out of whack when you look at the other 49 states,” Miller said. “I will continue to fight for reform until we make auto insurance more affordable in Michigan. The time to do something is now.”