Issue Position: Auto No-Fault Insurance

Issue Position

Michigan has some of the highest auto insurance rates in the country. It is not uncommon for drivers in Detroit to pay more than $4,000-$7,000 each year for auto insurance in a city with a median household income of only about $25,000. Driving without auto insurance is a crime which can lead to civil fines, license suspension, and can snowball into jail time. Yet 25% of Michigan drivers and 50% of Detroit drivers drive without insurance because they cannot afford the minimum coverage. One of the top three issues I hear from the residences of Livingston and Washtenaw counties is the outrageous cost of their auto insurance premiums. Finding ways to lower insurance premiums is an issue which affects every driver in Michigan and is my top priority.

Under legislation I sponsored, Michigan drivers would have been able to choose between three various levels of personal injury protection benefits. The first option would have been an unlimited option -- the same benefit we all are mandated to have today. Consumers who choose to keep unlimited, lifetime medical coverage would have been able to do so for 10% less than they pay today. The second option would have been $500,00 per occurrence worth of personal injury protection benefits. Under this option, drivers would have saved 20% off the medical portion of their auto insurance. The final option was $250,000 per occurrence. Drivers who purchased this option would have saved 40% off the medical portion of their bill.

Michigan is the only state in the nation that prohibits a driver from having a choice in how much medical benefits they purchase through their auto insurance. I believe that Michigan residents are smart enough to make the decision that is right for them and their families. Less than 0.01 percent of drivers in Michigan will ever need to use unlimited, lifetime medical coverage as the result of a catastrophic auto accident; however, we mandate 100% of drivers purchase those benefits. Even under Obamacare, Democrats did not mandate every individual purchase the highest coverage option and even they gave consumers a tiered level of choice. Why? They know the cost of unlimited, lifetime medical benefits is unafforable for the average family.

The legislation would have also enacted a fee schedule for hospitals and health providers to reign in out of control medical costs, limited family provided attendant care, and help fight insurance fraud.

Unless we reform or repeal Michigan's auto no-fault law premiums will continue to rise; and more drivers across Michigan will decide to drive illegally.

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