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House Dems Announce Auto Insurance Reforms

May 17, 2019

The House Democratic caucus announced a plan reforming auto insurance rates they say would bring a 40% reduction to Michigan’s high rates. Named the D.R.I.V.E. (Delivering Reduced Insurance Rates and Value to Every Michigander) plan, in addition to reducing rates, it aims to increase consumer protections, and end rate-setting practices such as red-lining.

Specifics of the plan include:

    • Require insurance companies to reduce rates by 40% off the total bill.
    • Prohibit insurance companies from using zip codes, marital status, education level, home ownership status, gender, or credit scores from being used to set rates.
    • Create a consumer protection fraud authority.
    • Maintain full Personal Injury Protection (PIP) accident coverage for all drivers.
    • Extend the amount of time claimants have to file a claim from one to three years.
    • Recognize Medicaid and other lifetime retirement health care as an alternative to PIP coverage as long as the alternative includes long-term care coverage.
    • Increase transparency within the Michigan Catastrophic Claims Association.
    • Drivers could receive a discount for coordinating their auto insurance with their health care.

Their ideas are reflected in a proposed House substitute to Senate Bill 1, which is the Senate’s legislation reforming Michigan’s auto no-fault insurance system. For more information, please visit https://housedems.com/drive.

As of Thursday afternoon, House Speaker Lee Chatfield (R-Levering) and Senate Majority Leader Mike Shirkey (R-Clarklake) announced they are holding off on a vote on their auto insurance reform plan for now while they continue to negotiate with Governor Gretchen Whitmer.

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