Governor Lays Out Auto Insurance Overhaul Plan

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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  • by Robert Location: Eaton Rapids on Apr 29, 2013 at 01:25 PM
    Someone needs to address these rates. I just had to turn down a deal to buy a new car because every insurance agent I called told me that I would have to pay more each month ($200) than what the car payment ($195) was going to be. Thus paying more per year for the insurance than what I am paying for the car itself. Call me crazy but why would anyone agree to these terms? Someone needs to kick the insurance companies in the backside. For now, I am not going to make the car purchase because of the insurance premium.
  • by KIM Location: Hillsdale on Apr 25, 2013 at 05:18 PM
    I think it is a fair solution, I can barely afford to drive, due to insurance premiums,the catastrophic claim is $99.66 per vehicle per SIX months. That makes my insurance $400 dollars every six months on a vehicle I bought for $4000, and yes that is minimum coverage with no health insurance, with that and the price of gas, no wonder so many stay home and draw assistance.
  • by A Patriot Location: Lansing on Apr 19, 2013 at 07:12 AM
    So let's figure this out...$250 less on car insurance premiums per year as opposed to the premiums increase that you'd have to pay to continue your health care for life if you are in a disabling accident.. Seems slightly unfair, don't you think??!! But it would benefit the insurance industry..right? ( sarcasm inserted here)
  • by Anonymous on Apr 19, 2013 at 07:08 AM
    So he wants to cut our insurance rates so he can TAX us more! I thought the GOP was for less taxes?
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