Michigan lawmakers looking at reforms to lower auto insurance rates
LANSING, Mich. (NEWSCHANNEL 3) - Right now Michigan lawmakers are looking at reforms to lower how much you pay for auto insurance.
Our Political Reporter Nick Minock tells us how much less you could pay for auto no fault insurance if one reform gets the green light.
Michiganders pay double the national average for auto insurance, ranking RATES IN the Great Lake State among the most expensive IN THE COUNTRY.
Right now, State Representative Jason Sheppard is rolling out a plan to reduce your auto insurance rate by up to 30 percent.
According to Sheppard, Michigan drivers must purchase unlimited lifetime medical expenses, a lucrative benefit that also drives up costs.
Sheppard's plan would replace that system by giving you the option to not only select unlimited coverage, but making three other coverage options available to you.
The plan is similar to selecting coverage options for your house or renters insurance.
Under the plan, the first tier of auto coverage would cover your medical expenses up to 250 thousand dollars.
The second tier would cover you up to 500 thousand dollars and the third tier would cover you up to $1 million.
And if you would still like to carry unlimited insurance, you can under Sheppard's plan.
The bill is being drafted right now and is expected to be introduced this Fall.
But already, Sheppard is expecting opposition from the Michigan medical community, which has long opposed different reforms to auto no fault insurance.
Sheppard's office says they hope to pass the plan by the end of December.