Committee Reports Auto Insurance Reform

Liz Gullett

Oct 27, 2017

On Thursday, the House Insurance Committee reported legislation reforming Michigan’s auto no-fault insurance system. Under current law, all Michigan drivers are required to buy unlimited lifetime health benefits through their auto insurance. Michigan has the highest auto insurance premiums in the country and supporters of this bill point to our current system as the cause of the high rates.

Under the bill as reported by the committee, persons receiving lifetime health care after a catastrophic traffic accident will continue to do so and drivers can choose to continue to purchase unlimited personal injury protection (PIP) coverage. It also mandates a reduction in rates on the PIP portion of their policies in the following manner; 10% reduction for those buying unlimited coverage, 20% reduction for those purchasing $500,000 in coverage, and a 40% decrease for those purchasing $250,000 in coverage. Additionally, the bill aims at reducing fraud and reducing medical costs by establishing a fee schedule. The bill has been sent to the House floor for consideration.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.