Lansing, MI – Now that republicans finally have a majority control over the Michigan Senate, the republicans plan to make cutting auto insurance rates a top priority. They just introduced a bill in this new session which would let older drivers have medicare or other health insurance provide coverage. It would also allow younger drivers to “opt out” of Michigan’s no-fault policy and decided to carry less insurance coverage.
This bill is more about signalling that they are willing to do anything to bring change. Essentially, this bill screams that that they want to lower insurance costs and will iron out all the specifics and details later.
This might seem like a good thing to reduce insurance rates, but they aren’t telling you the whole story. Michigan has high insurance rates because it provided the best coverage in the country. If you are hurt in a car accident, you will not find another state that provided what Michigan does. I understand that people are more concerned about how much they pay per year in insurance, but please don’t put on the blindfold and think that this is a good move.
Insurance companies are extremely profitable already, and this is just another strategy to increase profits while decreasing the liability they are responsible for. They are trying to have their cake and eat it to. If they want people to opt out or cap the limits, JUST END NO-FAULT. This system doesn’t work unless everyone is participating. The auto insurance companies simply want to payout less and receive the same amount from their customers. These so called changes won’t lower your insurance much but it will strip all the good benefits from the current no-fault system.