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Auto insurance policies could be allowed in Michigan without unlimited lifetime health care under a measure being introduced in the Michigan Senate.
The bill, which is aimed only at lower income motorists, is co-sponsored by Senate Republican Joe Hune of Hamburg, and Senate Democrat Virgil Smith of Detroit.
Under the measure, those earning 300% of the poverty level or less and who have a good driving record, could buy an insurance policy that offers only $50,000 in personal injury coverage, and presumably results in less expensive insurance.
Michigan’s insurance law mandates unlimited coverage, something that critics say has driven up the price of auto insurance.
Supporters say it will allow lower income motorists in Michigan to be able to afford auto insurance and reduce the number of uninsured motorists.
They estimate that up to 50 percent of Detroit drivers and up to 25 percent of Michigan drivers are on the road without required auto insurance.
The bill, if approved, would be in effect for a “five year test period” according to sponsors.
