Plan would provide much-needed relief to Michigan drivers, who are paying some of the highest car insurance premiums in the country
State Rep. Jason Sheppard (R-Temperance) on Monday unveiled a plan to tackle Michigan’s outrageously high auto insurance rates, which are among the costliest in the nation.
“Under my plan, consumers would be offered options, which would open the door to more insurance choices increased competition and ultimately drive down costs,” said Sheppard. “The plan preserves Michigan’s one-of-a-kind unlimited benefits for those hurt in a car crash, while offering a range of more cost-effective options.”
A driver in Michigan will pay, on average, more than $2,000 a year for car insurance – which is twice the national average. Drivers in Michigan pay nearly three times more than drivers in neighboring Ohio and Wisconsin.
One of the contributing factors to the high cost of auto insurance in Michigan is the mandate that drivers purchase unlimited lifetime medical benefits, which are the most generous in the country.
“What makes this plan unique is its simplicity,” said Sheppard. “Customers would have four clear options when choosing their car insurance, including retaining the generous, unlimited lifetime medical benefits. However, some of the other options could save drivers 30 percent or more on their car insurance premiums.”
Rep. Sheppard laid out the plan during a town hall meeting Monday night at the Bedford Public Library in Temperance. Additional town halls are planned throughout the state to educate the public on his proposal and to discuss drivers’ concerns about the rising cost of auto insurance.