Proposed Bills to Decrease Auto Insurance in Michigan

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May 21st, 2013 at 12:57 pm star

In 2011, Michigan held the ranking for highest auto insurance rates in the U.S. State lawmakers from Detroit are trying to end that trend with proposed bills that will lower insurance rates.

Michigan has a no-fault insurance policy which guarantees personal injury protection payments to those injured in auto accidents.

Gov. Rick Snyder and other Republicans believe that the no-fault policy boosts insurance premiums and have created a plan to cap insurance payments at $1 million. They say this plan will reduce rates by $125 per vehicle for one year, with possible reductions in the future.

However, members of the Detroit Democratic Caucus say that the no-fault policy is only a small contributor to insurance rates.

“We have a rare opportunity to gain some momentum in creating more transparency for the MCCA [Michigan Catastrophic Claims Coalition, the body that administers funds for catastrophic auto injuries], which sits on $14 billion of our money but refuses to open their books,” State Representative Thomas Stallworth says. http://www.michiganradio.org/post/detroit-state-lawmakers-suggest-alternative-auto-insurance-changes

State Representative Phil Cavanagh is proposing legislation that would restructure the MCAA board to focus on public interests rather than insurance companies.

There are additional proposed bills that would require insurance companies to explain rate increases and stop insurance companies from sending vehicles to collision shops they own.

For more information please visit:

Gov. Snyder's Proposal: http://www.mlive.com/business/index.ssf/2013/04/gov_rick_snyder_proposes_cappi.html

Insurance rates by state: http://money.msn.com/auto-insurance/highest-car-insurance-rates-by-state