What’s Wrong With Auto Insurance in Michigan

(and What We Can Do About It)

The Issue at Hand

It’s no secret that Michigan’s no-fault auto insurance system has problems. Michigan drivers pay some of the highest insurance premiums in the country.

Premiums are so costly, in fact, that an estimated one in five vehicles in Michigan is driven by an uninsured driver.

No other state in the nation requires drivers to purchase coverage that provides unlimited benefits — this despite the fact that only a tiny fraction of drivers will ever cash in on those benefits.

Even the primary purpose of using a no-fault system — reducing lawsuits and court costs — no longer holds in Michigan: Auto-related lawsuits are on the rise.

Clearly, reform is needed.

A Viable Solution

The Michigan Legislature appears ready to tackle this issue and pass reforms that would work to drive down premiums in Michigan. Senate Bill 1 would institute several changes that would be beneficial for Michigan drivers. It would:

Remove the requirement that all drivers purchase expensive, unlimited coverage that few will ever need.
Allow drivers to opt out of purchasing medical coverage if they are already covered by their health insurer.
Control medical costs by limiting what providers can charge to the rates set by the state’s workers’ compensation system.

Resources

What’s Wrong with Michigan’s No-Fault Automobile Insurance

Restrictions on Rating Factors Won’t Reduce Overall Auto Insurance Costs By Michael Van Beek
Worries Over Medicaid Costs No Reason to Oppose No-Fault Reform By Michael Van Beek
No-Fault Reform Plans Will Save Drivers Money By Michael Van Beek
Mackinac Center Praises Proposed Auto Insurance Reforms By Michael Van Beek
Auto Insurance Reforms Worth Supporting By Michael Van Beek
Only One Auto Insurance Reform Plan Worth Pursuing By Matt Coffey and Michael Van Beek
New Analysis: Auto Insurance Costs Out of Control By Michael Van Beek
Get Uninsured Cars Off the Road Through Reforming No-Fault By Michael Van Beek
Give Michigan Drivers Relief from High Auto Insurance PremiumsBy Matt Coffey and Michael Van Beek
Michigan Stands Out on High Cost of Car Insurance By Dr. Gary L. Wolfram
Reforming Michigan’s Auto Insurance Industry By Gary Wolfram and D. Joseph Olson

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