State Representative Pauline Wendzel and her colleagues successfully passed a bipartisan auto-insurance reform package that will provide consumer options and deliver rate relief for all Michigan drivers.

“For decades, the Legislature has tried and failed to reform our broken auto-insurance system. Tonight, we have succeeded where so many previous attempts have failed,” Wendzel said.

The House legislation includes several choices for motorists to choose from in personal injury protection coverage – totally opting out of PIP, which would result in a 100% guaranteed rate reduction in the PIP portion of the insurance bill, and a $50,000 coverage plan that is accompanied by a guarantee of 80% reduction in the PIP portion of the insurance bill.  The legislation would also offer a $250,000 coverage option that would also result in a 60% reduction in PIP costs; a $500,000 plan that comes with a 30% reduction in PIP; and an unlimited medical benefit option similar to what is offered now under the no-fault system.  This option would guarantee a 10% rollback in PIP rates.

“I wanted to thank Speaker Chatfield and Representative Wentworth for the open and transparent process we’ve had in the House, Wendzel said.  “I relayed the comments and concerns I had heard on the doorsteps of so many people in our community to ensure that Southwest Michigan had a strong voice in this process.”

In addition to the coverage options, the House legislation also installs the workers’ compensation fee schedule on what insurers would pay health care providers for various procedures. The plan would also end the double tax on seniors who are already entitled to Medicare or have lifetime retiree health care. The House also included an amendment that states after the five year mandate rate rollback, Michigan would move to a “file and approve” system for auto insurance company policies rather than a “file and use” system, giving regulators greater authority to reject rate increases.