Auto insurance discussed in Lansing

State Rep. Aaron Miller this week joined House colleagues in unveiling an eight-bill package repealing Michigan’s no-fault car insurance system.

The goal of the plan is to bring significant relief to drivers paying the nation’s most expensive insurance premiums.

The proposal eliminates the no-fault system and moves Michigan to a full-tort system similar to other states, including Indiana. The legislation continues benefits for everyone already receiving lifetime health care after a catastrophic traffic accident.

The plan still mandates that all Michigan drivers have insurance, but provides more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages, such as pain and suffering.

The legislation also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association MCCA until it is no longer needed.

Miller said rates would be reduced even further due to more competition from insurance companies coming back to the state to do more business.

The bill package, House Bills 5517-23, will be formally read into the record next week.

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