A broad coalition of groups from across Michigan gathered in Lansing Tuesday to announce a package of bills that could reduce auto insurance rates up to 50%.
The groups ranged from the NAACP to the Michigan Chamber of Commerce to Detroit Mayor Mike Duggan, as well as both Republicans and Democrats in the Legislature.
And they were all there to plead for relief from the nation’s highest auto insurance rates.
The Rev. Wendell Anthony, president of the Detroit chapter of the NAACP, added, “This bipartisan effort is different. It’s not often I stand in a sea of Republicans, but it shows what you can do when you have the will.”
The auto insurance reform would:
• Cut premium rates 20% to 50% in three tiers: a 20% cut for average drivers with comprehensive coverage; a 35% cut for a retiree with full lifetime health care; and a 50% cut for drivers with no collision or theft coverage.
• Allow drivers to choose the level of personal injury coverage: $250,000, $500,000 or continue with the unlimited lifetime benefits that all Michigan drivers have to have now.
Require insurers to roll back rates an average of 20% on comprehensive policies and up to 50% on basic policies. Any future rate increases would be regulated by the state for the next five years.
• Set fees at either 100% or 125% of the the rates charged for Medicare patients for medical services provided by health care providers to victims of car crashes. Right now, such schedules aren’t in place for car crash victims, leading to inflated prices for services to people hurt in car accidents.
Allow senior citizens to use Medicare coverage, rather than auto insurance, to cover medical bills, leading to savings of $800 to $1,000 a year.