Detroit mayor unveils plan to lower Michigan auto insurance rates up to 20%

Posted at 5:52 AM, Sep 26, 2017
and last updated 2017-09-26 17:20:40-04

Detroit Mayor Mike Duggan unveiled his bipartisan plan to lower auto insurance rates in the state of Michigan at the capitol on Tuesday morning.

Joined by Michigan House Speaker Tom Leonard and State Rep. Lana Theis, Duggan's plan would reduce drivers' car insurance rates 20 percent on average.

It would end the state's requirement that all drivers pay for unlimited lifetime health insurance through their auto insurers, no matter where they have healthcare. Michigan is the only state that does this.

Drivers in Michigan pay some of the highest car insurance premiums, averaging $2,400 a year, according to That's nearly twice as much as the national average and almost $500 more than the second highest state, Louisiana.

"It's clear that no-fault is collapsing and no doing what it was designed to do, and that's costing Michigan drivers dearly," Duggan said. "People are are paying too much, forcing them to cut back on other necessities so they can afford to drive. It leaves too many people driving uninsured or unable to drive at all because their insurance costs more than their car payment."

Some of the highlights of the reformed legislation include:
  • Insurers would be required by law to roll back rates for people who select the $250,000 coverage level to guarantee that the savings are passed to the drivers and not kept in insurers' pockets.
  • Auto insurers would be subject ot a fee schedule for health services, just like health insurers.
  • Senior drivers who have lifetime health care coverage would be able to opt out of PIP since they're already insured through employee retirement plans
  • Lawyers would be prevented from filing liens agianst health care providers until an insurer has denied a coverage claim, preventing thousands of lawsuits from being filed.
  • Anti-fraud measures would crack down on those who abuse the system with unnecessary or excessive medical services
  • Any excess funding in the Michigan Catastrophic Claims Association that actuaries say isn't necessary to cover medical care would be returned to drivers who paid into it.

Drivers would be able to choose options of $250,000 or $500,000 for personal injury protection.


"Our plan provides affordability, flexibility and freedom for Michigan motorists," Theis said. "Michigan's current no-fault system is No. 1 for all the wrong reasons. It's time to let hard-working families and seniors choose their own PIP coverage level, saving hundreds of dollars on their premiums each year."