Committee Holds Hearings on Auto Insurance Reform

Liz Gullett

Oct 06, 2017

This week, the House Insurance Committee held two hearings on a proposal reforming Michigan’s auto no-fault insurance system. The plan was announced last week by Speaker Tom Leonard (R-DeWitt Twp.), Detroit Mayor Mike Duggan, and bill sponsor Representative Lana Theis (R-Brighton). “Reforming auto insurance in the state has been heavily discussed for many years as Michigan residents pay some of the highest premiums in the country, especially those living in urban areas,” said Tony Des Chenes of MLC. For full details of the proposal please read our blog post detailing the announcement and the specifics of the proposed reforms.

During the hearings, chair of the committee, Representative Theis, testified that reform is necessary to ease the financial burden resulting from the high premiums. She stated her bill will make auto insurance more affordable, guarantee rate reductions for motorists who choose alternative personal injury protection coverage levels, crack down on fraud and abuse, and rein in medical costs by establishing a fee schedule.

Several groups have come out on both sides of the bill. Opponents of the bill include the Michigan Health and Hospital Association, the Insurance Alliance of Michigan, amongst others. In support are groups such as the Michigan Chamber and the Michigan Department of Insurance and Financial Services.

The legislation remains in the committee awaiting further consideration.

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