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News Release: Senator LaSata backs reform to reduce car insurance rates

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May 16, 2019
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Michigan drivers pay the most expensive auto insurance rates in the country — 83% higher than the national average! It is a heavy burden for many households. 

I recently voted in support of legislation to reduce car insurance rates by providing drivers with more coverage choices, cracking down on fraud and lawsuit abuse and reducing inflated medical costs, while ensuring accident victims receive the medical care they need. 

Currently, drivers in the state must carry unlimited, one-size-fits-all personal injury protection (PIP) coverage. Under Senate Bill 1, insurers would be required to offer Michigan drivers at least three new PIP coverage options, including an opt-out option for drivers with qualified health coverage like Medicare, Medicaid and health insurance. Motorists should be able to choose the coverage that best meets their needs and their budget.

The bill would cut down on conflicts of interest in the auto insurance system and create an anti-fraud task force in the Michigan State Police. This would provide law enforcement resources to identify and prosecute fraud operations. SB 1 would also reduce medical cost inflation and provide more equity in health care billing. 

Finally, the legislation would reduce the $220 annual Michigan Catastrophic Claims Association (MCCA) fee by 80%. People already receiving care through the MCCA would continue to get their lifetime care under their current unlimited benefit policy. SB 1 has been sent to the Michigan House for consideration.