State Rep. Jason Sheppard today continued his battle to bring lower car insurance prices to Monroe County families, joining his House colleagues in approving a plan to reform Michigan’s broken no-fault system.

The plan guarantees lower rates for all drivers in Michigan, who now pay the highest average car insurance premiums in the nation – twice as high as drivers in neighboring states like Ohio. The bill offers personal injury coverage options, fights fraud and abuse and addresses medical costs.

“Michigan families simply can’t afford to keep paying the highest car insurance premiums in the country,” Sheppard, of Temperance, said after casting a crucial vote in favor of the legislation. “This solution will lower rates for drivers all across our state. People will finally be able to afford to drive in Michigan.”

Michigan is the only state to mandate unlimited lifetime health care coverage through car insurance. The plan approved today allows people 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 (PIP) portion of policies. It would result in a 10-percent reduction of PIP costs for drivers who buy unlimited coverage, a 30-percent drop for drivers choosing $500,000, a 60-percent reduction for drivers purchasing $250,000, 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 medical facilities charging far more to treat car crash 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.

“This is an issue I have worked on since I first started serving as a state representative,” Sheppard said. “After years of gridlock, I’m pleased we were able to use my bill as a foundation to move forward with a solution that will deliver real rate relief for Michigan families.”

The sweeping legislation now advances to the Senate for consideration.

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