Bizon supports reform to reduce auto insurance rates

LANSING, Mich. — Sen. John Bizon, M.D. on Tuesday voted to support Senate legislation to reduce auto insurance rates in Michigan by providing drivers more coverage choices, cracking down on fraud and lawsuit abuse, and reducing inflated medical costs.

“The sky-high rates we pay for auto insurance in this state are one of the issues I hear about most when I’m out in the district,” said Bizon, R-Battle Creek. “People have been clamoring for a solution to this problem. Today we passed a bill that provides that solution.”

According to an October 2018 report, Michigan drivers pay the highest auto insurance rates in the country — 83% higher than the national average. A recent University of Michigan study also said that auto insurance rates are unaffordable in 97% of the state’s ZIP codes.

Senate Bill 1 would require auto insurers to offer Michigan drivers at least three new personal injury protection (PIP) coverage options, including the ability of drivers with qualified medical coverage — such as health insurance, Medicare or Medicaid — to opt out of PIP coverage since they already have medical coverage for injuries.

The legislation would also reduce out-of-control medical costs that are passed on to drivers via higher rates, cut fraud and conflicts of interest in the auto insurance system, and reduce the announced $220 annual Michigan Catastrophic Claims Association fee by 80%.

SB 1 now heads to the Michigan House for further consideration.