A bill aimed at lowering auto insurance rates in Michigan was introduced this week in the Michigan State Senate.
Michigan Sen. Aric Nesbitt (R-Lawton) introduced the bill on Tuesday.
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“Michiganders have made it crystal clear — they want this problem solved,” said Sen. Nesbitt. “Michigan is the most expensive state in the country to purchase auto insurance, and people are understandably upset. We have an obligation to solve this problem.”
Senate Bill 1 would do a few things:
- Allow drivers over the age of 62 the option of allowing Medicare or other lifetime healthcare benefits to cover medical costs.
- Give younger drivers the abiliity to choose an amount of coverage.
- More transparency in health provider billing pracitices.
The bill is in its early stages and was referred to the Senate Committee on Insurance and Banking for further consideration.
“This is something the Legislature has been looking at for some time. I look forward to continuing this conversation and working with my colleagues to finally get these reforms approved,” Nesbitt said. “Michigan consumers simply deserve better, and I think this legislation is a great start to the conversation.”
In 2017, Detroit Mayor Mike Duggan worked to pass a bill in the Michigan Legislature to lower insurance costs, but it ultimately failed to pass.
In 2018, Duggan filed a lawsuit in U.S. District Court, seeking to have Michigan's No-Fault auto insurance law declared unconstitutional. The mayor filed the suit along with a group of eight other plaintiffs from Michigan who all struggle with high insurance rates.
Duggan argued that Michigan's No-Fault insurance system discriminates against people with lower income. Michigan law requires drivers to have auto insurance.
Michigan has the most expensive auto insurance policies in the country, according to Forbes.
The average car insurance premium in the state hit $2,239 in 2018, which is $874, or 64 percent, higher than the national average premium of $1,365.