Lucido introduces bills to reduce auto insurance rates

LANSING, Mich. — State Sen. Peter J. Lucido introduced legislation this week to help reduce the cost of auto insurance in Michigan.

It is estimated that Michigan is the most expensive state for car insurance in the nation, with an average premium that is 83 percent more expensive than the national average.

“The incredible cost of auto insurance in Michigan is a problem that all of us share and that we must solve,” said Lucido, R-Shelby Township. “The plan that we have introduced will help accomplish that by giving drivers more options, through cost protections and increased competition and by reducing fraud, all while ensuring accident victims get the medical care they need.”

Senate Bill 1 would make reforms to:

  • Give drivers the ability to choose the personal injury protection coverage that best meets their needs and budget;
  • Reduce medical cost inflation related to auto insurance claims that is 90 percent higher than normal health care inflation;
  • Crack down on unnecessary medical treatments, products and services;
  • Reduce fraud and conflicts of interest in the auto insurance system; and
  • Allow seniors on Medicare to enjoy savings on their auto insurance by choosing to not carry personal injury protection coverage since they effectively already have coverage for injuries.

Lucido introduced Senate Bills 4 – 9, which would provide additional reforms, including:

  • Requiring the disclosure of the actuarial computation used to set rates within the Michigan Catastrophic Claims Association;
  • Creating a fraud prevention authority in the state;
  • Increasing penalties for driving a motor vehicle without a valid driver license and requiring law enforcement to take certain actions;
  • Establishing the vehicle insurance verification act to launch a system for online, real time auto insurance verification; and
  • Enhancing coordination between the secretary of state and Department of Insurance and Financial Services.

“Many attempts have been made in the past to fix auto no-fault, and I am confident that now is the chance to get it done,” Lucido said. “This legislation will help reduce the burdensome car insurance costs facing families in Macomb County and throughout our state. We can no longer wait to act.”