Governor Proposes End of Lifetime Catastrophic Coverage Guarantee

By: Associated Press
By: Associated Press

Gov. Rick Snyder wants to lower Michigan drivers' auto insurance bills in exchange for an end to unlimited lifetime medical coverage for people seriously injured in accidents.

The average family's premiums could drop $250 a year under the plan being unveiled Thursday by the Republican governor and GOP lawmakers.

Michigan has some of the highest auto insurance rates in the U.S. It's the only state where motorists pay $175 per car per year to a fund covering catastrophic injuries for life.

Snyder proposes capping personal injury protection at $1 million, which he says is still much higher than in every other state.

Drivers also would be charged $25 a year to help fund Medicaid because a tax on health insurance claims isn't generating as much as anticipated.


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