New Auto Insurance Reform Bill: What Changes Drivers Can Expect

Michigan lawmakers reached a deal Friday to overhaul the state’s high auto insurance premiums.

This new bill stops companies from basing rates on things like sex, marital status, zip codes and credit scores.

“It was the number one priority of House Republicans coming into this term,” Speaker Lee Chatfield (R- Levering) said.

“And with partnership with the Senate and the Governor, we were able to reach a consensus that actually delivers real rate relief to the people of our state,” Speaker Chatfield said.

Speaker Chatfield says if this bill is signed into law, Michigan drivers can begin to see rate changes as early as 2020.

Drivers are reacting to the auto insurance reform deal reached in Lansing Friday.  

“I guess I just didn’t realize how much more we were paying than everyone else until this whole issue came up,” one driver said.

“They’re always high, they’re a big part of the monthly budget,” was another driver’s reaction.

Brandon Hewitt works as an attorney for Michigan Auto Law.

“This completely changes the entire landscape of auto insurance, and if you own and drive an automobile in Michigan, what kind of coverage you need to purchase,” Hewitt said.

The bills biggest changes come to the medical coverage.

“The current system provides you unlimited medical treatment to make sure you’re taken care of forever,” Hewitt said.

Michigan is the only state to require that drivers buy unlimited personal injury protection benefits with their auto insurance policy.

This new bill gives drivers the option to choose the level of medical coverage they want with $250,000, $500,000 or the unlimited coverage as options.

It also adds a different option for Medicare and Medicaid recipients.

“You can only waive your medical coverage completely if you are a Medicare recipient and you can only access the $50,000 coverage if you are a Medicaid recipient,” Hewitt said.

Experts suggest you talk to your insurance agent, your health insurance provider, or even an auto attorney to make sure of your coverage before choosing any plan.