Michigan Senate Aims To Cut Car Insurance Rates: Report

MICHIGAN — The Michigan Senate could pass legislation Tuesday that is meant to cut the highest auto insurance premiums in the country by getting rid of a requirement that drivers purchase unlimited medical benefits to cover crash injuries, according to reports.

Michigan infamously is the only state to have such a mandate. Under the new measure, motorists could instead choose among lower levels of personal injury protection, including no coverage if they have other qualifying health insurance, WDIV reported.

The Republican-backed measures, which are expected to win approval in a committee and from the full Senate, face an uncertain future following legislative stalemates in recent years, the report said.

“The current system’s really failing Michigan drivers and families,” said Republican Sen. Aric Nesbitt of Lawton, a bill sponsor who pointed to a recent study showing that the state’s estimated annual premium of $2,610 is almost double the national average. “Thousands of Michiganders have been priced out of driving, and thousands more risk driving without insurance.”

The measures would also curtail how car insurers must pay much more than health insurers do for the same medical services — another factor driving overall claim costs — crack down on fraud and make other changes related to no-fault lawsuits.

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