LANSING (WKZO AM/FM) — Michigan will soon no longer be a full “no fault” auto insurance state.
Speaker Lee Chatfield addressed the House Friday afternoon before both chambers overwhelmingly approved legislation that will allow drivers options for personal injury protection coverage, including the existing unlimited lifetime coverage currently mandated by law.
Governor Gretchen Whitmer called the vote “truly historic” and is expected to sign it.
In a statement on Friday, Whitmer wrote:
“This plan will help drivers from Detroit all the way to the U.P. It guarantees lower auto insurance rates for eight years, protects people’s choice to pick their own insurance and coverage options while preserving the safety net, and bans insurance companies from using discriminatory non-driving factors when setting rates.”
A summary of Senate Bill 0001 from Senator Kim LaSata states:
- Requiring auto insurers to provide customers with a range of personal injury protection (PIP) options, including the ability to opt-out of PIP coverage entirely if an individual has other qualified health coverage, a $50,000 policy for Medicaid enrollees, a $250,000 policy, a $500,000 policy, and an unlimited medical benefit policy;
- Reducing the annual Michigan Catastrophic Claims Association fee by 80% for all above options other than unlimited;
- Strengthening the insurance fraud division within the state Department of Insurance and Financial Services to empower law enforcement to crack down on auto insurance fraud;
- Ending excessive health care costs related to auto insurance claims by implementing a fee schedule to cap the amount providers can charge insurers; and
- Eliminating non-driving rating factors, such as sex or marital status, to ensure a level playing field.
