U.P. State Senator-elect Ed McBroom (R-Vulcan) is calling on the Michigan Legislature to pass real, cost-saving reforms to Michigan’s auto no-fault insurance system before the end of the current term.
“Michigan has the highest auto insurance costs in the nation. This is unacceptable,” states McBroom. “Reforming this needs to be at the top of the list for the legislature. Michigan drivers need relief, and they need relief now.
“By introducing consumer choice, implementing a fee schedule, and cracking down on fraud—all while mandating the passing on of significant savings to drivers—the average person could save up to 40% on their car insurance. The legislature has an opportunity to give every Michigan family a great Christmas present by promptly acting on this issue.
“The current Governor has promised to sign reform to auto insurance, so the legislature should act now to get this done before the new governor, who did not support these reforms in her campaign, takes office.”
McBroom has been a strong advocate for auto insurance reform, both as a state representative and candidate for state senate. He publicly supported reform bill HB 5013 last November, but it failed in a late-night vote. McBroom pledges to continue fighting to lower the highest auto insurance costs in the United States.
The Insurance Alliance of Michigan (IAM) is urging the Legislature to pass real reforms during lame-duck session to fix Michigan’s broken, outdated auto no-fault system and bring relief to drivers paying the highest auto insurance premiums in the country.
“Lawmakers have spent the last several months going door-to-door and meeting with their constituents and now have an opportunity to address one of the biggest burdens facing Michiganders: The cost of auto insurance,” said Dyck Van Koevering, general counsel of the Insurance Alliance of Michigan. “We urge the Legislature to enact real reforms to bring down the cost of auto insurance and bring relief to drivers paying the most expensive premiums in the country.”
For the fifth straight year, Insure.com ranked Michigan No. 1 for having the most expensive auto insurance premiums in the country. According to the website, car insurance in Michigan costs – on average – $2,239 and is 64 percent more expensive than the national average.
By comparison, Michigan’s neighbors – Indiana, Ohio and Wisconsin – offer some of the most affordable auto insurance premiums in the country. The average cost for car insurance in Indiana is $1,091. In Wisconsin, the average premium is $1,084. And in Ohio, the average car insurance premium is $944.
“The report by Insure.com shows, once again, that Michigan is No. 1 for all the wrong reasons,” Van Koevering said. “We urge lawmakers to fix Michigan’s broken, outdated auto no-fault system by cracking down on fraud and abuse, stopping hospital overcharging and giving consumers a choice in their level of medical coverage – just like every other state.”
Michigan is the only state in the nation that forces drivers to purchase unlimited, lifetime medical benefits with their auto insurance. This expensive mandate is one of the biggest factors driving up the cost of auto insurance in Michigan.
The Legislature’s lame-duck session begins Nov. 27 and runs through Dec. 20.
