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  • James Townsend

Rep. Calley votes to lower car insurance rates for Michigan drivers

House approves historic reforms after decades of gridlock

State Rep. Julie Calley today voted to approve a landmark plan to fix Michigan’s broken car insurance system and reduce rates for drivers all across the state.

Calley said the plan offers drivers personal injury coverage options, reins in medical costs and fights fraud – features designed to end Michigan’s long-standing tenure as the state with the highest car insurance rates in the nation.

“This plan gives people the option to choose the level of car insurance coverage that best fits their needs and budget, just like they do right now with their health, home and life insurance policies,” Calley, of Portland, said after the vote. “Michigan families will see lower rates with this solution.”

Michigan is the only state to mandate unlimited lifetime health care coverage through car insurance. The plan approved today allows people currently using the coverage to keep it, and those who want it in the future to continue buying it – while providing more affordable options.

The plan:

  • Guarantees lower rates on the personal injury protection (PIP) portion of policies. It would result in a 10-percent reduction of PIP costs for drivers who buy unlimited coverage, a 30-percent drop for drivers choosing $500,000, a 60-percent reduction for drivers purchasing $250,000, and an 80-percent drop at the $50,000 coverage level;

  • Allows seniors with retiree health coverage such as Medicare, and those with health insurance policies that cover car accident-related injuries, to opt out of PIP coverage;

  • Establishes fee schedules to end the practice of medical facilities charging far more to treat car crash victims than other patients;

  • Cracks down on fraud and abuse by creating a fraud task force;

  • Provides more financial oversight of and transparency within the Michigan Catastrophic Claims Association;

  • Sets reasonable limits on compensation for attendant care contracts; and

  • Helps the state ensure insurance companies charge fair rates, while addressing attorney fee settlements and significantly reducing litigation.

The sweeping legislation now advances to the Senate for consideration.

Editor’s note: The information listed above is a press release from the Michigan House Republican Policy Office. An article published in The Detroit Free Press on Thursday indicates that Governor Gretchen Whitmer would veto the bill if it reaches her desk in the current form. That article can be found at

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