Michigan Lawmaker’s Proposal Would Allow Auto Insurance Options

Michigan state Rep. Jason Sheppard of Temperance has introduced legislation that he says would help drivers and families financially saddled by Michigan’s exorbitant automobile insurance rates.

House Bill 4488 will allow consumers to choose a level of coverage, up to the current standard of unlimited coverage, and create a fraud authority to address unlicensed drivers and other illegal behavior.

“Michigan residents deserve to have choices when it comes to automobile insurance so they have the opportunity to lower costs for their families,” Sheppard said in an announcement. “When we’re dictated what the level of coverage is instead of given a marketplace of varying rates and options, that is a problem which must be addressed.”

One of the key reasons for the high cost of Michigan auto insurance is a mandate that forces drivers to purchase unlimited lifetime medical benefits, the most generous benefits in the country.

Sheppard says his bill makes reforms aimed at decreasing insurance rates for the state as a whole and for Michigan families.

“We need to have automobile insurance on the same level as health and home benefit plans, where we have options for coverage. Let the consumers choose what is best for themselves and their families,” Sheppard said.

House Bill 4488 has been assigned to the House Insurance Committee for consideration.