Sen. Victory supports reform to reduce auto insurance rates

LANSING, Mich. — Sen. Roger Victory 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.

“We pay significantly more for auto insurance here in Michigan than folks anywhere else in the nation do, so fixing the system is a top concern for many residents,” said Victory, R-Hudsonville. “The measure we passed today will provide the relief the people of Ottawa County have been demanding.”

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.