Keweenaw Report Your Source for Local News and Sports
Governor Gretchen Whitmer is expected to sign auto insurance reform into law after both the House and Senate approved the bill on Friday.
The Governor and Republicans reached a deal last week on the reform package which has been hotly debated for years.
Michigan drivers pay the highest insurance premiums in the country, partly because of a unique requirement that insurance companies provide unlimited medical coverage in the case of a catastrophic accident.
Some lawmakers said that’s what made Michigan’s policies the best in the nation while reformers argued that drivers with their own medical coverage shouldn’t have to pay twice for the same benefits.
The bills passed overwhelmingly in both the House and Senate, with some Democrats opposing the changes.
State Representative Greg Markkanen said this will make it easier for motorists to pay those insurance premiums. “The high cost of Michigan’s car insurance is one of the most common complaints I hear from people in our community,” Markkanen said. “We’ve listened to their concerns and produced a solution that will make driving more affordable for families and seniors in the Upper Peninsula and all across Michigan.”
Under the bill, drivers will be able to choose what level of medical coverage they want from their auto insurer or choose to opt out if they already have qualifying medical coverage.
The bill also aims to reduce fraudulent insurance claims. State Representative Sara Cambensy, D-Marquette, said, “Most important to me, we gave the Attorney General and the Department of Insurance and Financial Services back the authority to go after the estimated $800 million in fraudulent no-fault claims each year. This exorbitant number shows just how out-of-control fraudulent car insurance claims in Michigan have become, and why we had to send a clear message today that that fraud will not be tolerated any longer.”
“Every major interest group involved in no-fault insurance took a hit with this bill,” Cambensy added. “Today’s vote was a vote that the people of Michigan adamantly demanded and rightfully deserved. This bill makes big changes and is not perfect. While the work is not done and there is more we can do, this is a huge step forward for Michigan families and our state.”
