Chamber Urges House Action on Auto Insurance Reform

September 10, 2017

In a memo to the Michigan House of Representatives last week, Michigan Chamber President & CEO Rich Studley called on state lawmakers to make meaningful auto insurance reform a top priority for the fall legislative session.

"Enough is enough! Michigan businesses, families and individuals need you to act now to reduce Michigan's highest-in-the-nation auto insurance premiums. Real, meaningful auto insurance reform must be a top priority for the fall legislative session.

"Average auto insurance premiums in Michigan were $2,738 in 2016, nearly twice the national average and worse in many regions of our state. Strong reforms cannot ignore the primary cost-drivers of the current no-fault system, including Michigan's unlimited Personal Injury Protection (PIP) benefits; the lack of a reasonable fee schedule to adequately reimburse providers for medical services, but stop excessive charges and cost­ shifting; and out-of-control reimbursements  to attendant caregivers.

"The Michigan Chamber supports major reforms to provide PIP choice or cap PIP benefits; establish a fee structure similar to workers' compensation or Medicare for medical services provided; and cap the number of hours in-home attendant caregivers can be reimbursed for providing care.

"Bold action is needed to drive down Michigan's exorbitant auto insurance rates. Michigan motorists and job providers need your support now."