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

Rep. O’Malley voted in favor of the plan to offer drivers personal injury coverage options, rein in medical costs and fight fraud – features designed to end Michigan’s long-standing tenure as the state with the costliest car insurance rates in the nation.

“This vote will help Northern Michigan and drivers across the state who pay one of the highest average car insurance premiums in the nation,” said O’Malley, of Lake Ann, after the vote. “It has been a historic day. I was proud to cast a yes vote when the Michigan House of Representatives moved legislation to finally lower the cost of auto insurance. Working together on this issue will get a smart comprehensive bill to the governor’s desk. I hope she signs it.”

Michigan’s costs are high largely because it’s the only state mandating unlimited lifetime health care coverage through car insurance. The 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 for all Michigan drivers.
• Gives drivers a choice on car insurance policies.
• Stops price gouging on medical services for car accident victims.
• Combats fraudulent claims to help lower costs.

The sweeping legislation now advances to the Senate for consideration.

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