Auto Insurance Reform Guarantees Lower Rates for MI Drivers
05/31/2019- Legislators have finally struck a deal on auto insurance reform in Michigan and it could save the average resident up to $1000 annually. Governor Gretchen Whitmer signed Senate Bill 1 into law Thursday morning, which gives drivers more choices on personal injury protection coverage and establishes new fee schedules for medical providers, limiting what they can charge for the treatment of auto crash-related injuries. Representative Beau LaFave of Iron Mountain sat on a special committee tasked with coming up with solutions to the state’s highest-in-the-nation car insurance premiums. He says yesterday’s passage of the bill was a long time coming.
Beyond saving people money, LaFave says this new legislation may help Michigan communities attract and retain residents, especially those bordering Wisconsin where auto insurance rates are three times less expensive.
Other parts of the bill prohibit insurance companies from using non-driving factors like credit scores, zip codes, and gender when determining rates. The bill goes into effect in July of 2020 and guarantees lower rates for eight years.