LANSING, Mich. — State Sen. Peter J. Lucido voted in support of legislation approved on Tuesday that could dramatically reduce the cost of auto insurance in Michigan.
Michigan is the most expensive state for car insurance in the nation, with an average premium that is 83% more expensive than the national average. A recent University of Michigan study indicates auto insurance is unaffordable in 97% of Michigan communities.
“Out-of-control auto insurance costs is a problem that all Michigan drivers share and that today we have acted to solve,” said Lucido, R-Shelby Township. “The plan that the Senate approved today could dramatically reduce the burdensome car insurance costs facing families in Macomb County and throughout our state by giving drivers more options, through cost protections and by going after fraud and abuse.”
Senate Bill 1 would make reforms to:
- Give drivers the ability to choose the personal injury protection (PIP) coverage that best meets their needs and budget;
- Reduce out-of-control medical costs that are passed on to drivers via higher rates;
- Crack down on fraud and conflicts of interest in the auto insurance system;
- Allow residents with qualified medical coverage — such as health insurance, Medicare or Medicaid — to opt out of PIP coverage since they already have medical coverage for injuries; and
- Bring more transparency and accountability to the Michigan Catastrophic Claims Association.
“Auto insurance premiums have been far too high for far too long,” Lucido said. “I am glad that we were able to approve these reforms for the sake of all Michigan drivers, and I encourage our colleagues in the House to do the same, as quickly as possible.”
The bill now advances to the state House of Representatives for consideration.