Lawmaker targets unlimited PIP option under introduced legislation

In an effort to promote best-in-the-nation no-fault car insurance benefits, state Rep. Doug Wozniak today introduced bipartisan legislation making the unlimited personal injury protection (PIP) coverage option more affordable and attractive to Michigan drivers.

Under the proposal, insurers will be able to offer options with higher deductibles and reduced premiums for consumers purchasing an unlimited PIP benefits plan. Motorists would be able to choose deductibles in increments of $1,000 – the higher the deductible, the greater the savings on premiums.

Wozniak’s plan is in response to landmark car insurance reforms that were signed into law recently, giving Michigan drivers choice for the first time as a no-fault state beginning in July 2020. Motorists will be able to choose alternative PIP coverage level options that best meet their budgets, including the option to continue purchasing unlimited coverage.

Wozniak said through mandatory rate rollbacks, those who decide to purchase unlimited benefits will see guaranteed savings of 10 percent on the PIP portion of their policies. He added that may be not enough savings to keep the unlimited option attractive to drivers and their families.

“I’m committed to leaving no stone unturned on no-fault reform because the people of Michigan deserve dependable coverage at an affordable price,” said Wozniak, of Shelby Township. “This legislation enhances our recent reforms, allowing consumers who purchase an unlimited benefits plan to see additional savings beyond the 10 percent reduction in rates. By making the unlimited PIP coverage level more attractive to drivers, we can help ensure more families across Michigan have access to live-saving benefits and are adequately covered in a tragic accident.”

House Bill 4734 now moves to the House Insurance Committee for further consideration.