Lansing Leaders Strike a Deal to Finally Lower Auto Insurance Rates in Michigan

Michigan Gov. Gretchen Whitmer Tweeted a triumphant note this morning following an apparent deal to settle Michigan's chaotic auto insurance issue. Taking to her Twitter account, the Governor posted: "It’s simple: when we work together, we solve problems. I look forward to working with the legislature to pass this legislation."

In a more explanatory public statement issued by Whitmer, she says from her office at the State Capitol: “After constructive conversations over the past week, I am pleased to announce that we have reached an agreement in concept on bipartisan auto no-fault reform legislation that will lower costs and protect coverage for Michigan drivers. The deal: guarantees rate relief for every Michigan driver; provides a choice in coverage levels; establishes more uniform and structured compensation levels for medical providers; and removes the ability of insurance companies to discriminate based on non-driving factors. I look forward to working with the legislature to pass and sign this important legislation into law.”

As part of her separate Tweet, Whitmer also added, "This bipartisan auto no-fault reform plan guarantees lower rates for every Michigander, protects people’s choice, & strengthens consumer protections."

Reports from Lansing indicate that the deal crafts five different options for drivers regarding which level of personal injury protection coverage they would prefer. Among the options are:

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  • A 20-percent reduction in Personal Injury Protection rates for $500,000 in coverage...
  • A 35-percent reduction in Personal Injury Protection rates for $250,000 in coverage...
  • A 45-percent reduction in Personal Injury Protection rates for $50,000 in coverage...
  • A 100-percent reduction for Senior Citzens and drivers with qualifying health insurance, such as Medicare or other private insurance plans...

Meanwhile, on the Legislative side of the issue, House Speaker Lee Chatfield and Senate Majority Leader Mike Shirkey issued a joint statement that says:

“The people we serve are demanding action. For far too long, drivers from Macomb to Menominee and from Kalamazoo to the Keweenaw have been absolutely fed up with paying the nation’s highest car insurance rates. They have been waiting decades to step up and deliver results. Today, that wait is over.”

The legislature still has to enact the deal, so it isn't complete yet. Stay tuned.