This week, Speaker Tom Leonard (R-DeWitt Twp.) Detroit Mayor Mike Duggan, and Representative Lana Theis (R-Brighton) announced their plan to reform Michigan’s auto insurance system. Michigan drivers pay the nation’s highest auto insurance premiums, averaging $2,400/year, nearly twice the national average. Insurance rates are especially high in urban areas, including metro Detroit, Grand Rapids, Lansing, and Flint. Detroit’s average annual premium tops $3,000/year, the highest of any city in America.
The bipartisan plan would end Michigan’s requirement that all drivers pay for unlimited lifetime health insurance through their auto insurers, no matter whether they already have health care coverage. Drivers who wish to keep unlimited health care specifically through an auto insurance company may continue to do so. Additionally, the proposal is said to root out fraud and abuse and reduce the rapidly growing number of lawsuits statewide. According to the proponents of the plan, it provides drivers options for lower rates and greater choice based on what they can afford.
Specifics of the proposal, include:
The legislation has been referred to the House Insurance Committee, where it is expected to receive its first hearing as early as next week.
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