Auto No-Fault Reform Sails Through House, Senate

Look for your auto insurance rates to fall soon. A compromise plan to overhaul Michigan’s unique no-fault system has sailed through the House and Senate in a rare Friday session with broad bipartisan support. The House passed the bill 94-15, and the Senate followed a short time later with a 34-4 vote.

The deal was reached this morning between Governor Whitmer and the Republican leaders in the House and Senate. Starting on July 1, 2021, a hospital fee schedule will be implemented to keep medical costs from car crashes in check. It will pay out at around 200% of the Medicare reimbursement rates. As for the personal injury protection coverage, there will be four options. The current unlimited lifetime coverage that is required by law will still be available. Other levels of coverage will be $500,000, $250,000, and $50,000 over a lifetime. Senior citizens on Medicare will be allowed to opt out of PIP entirely.

Insurance companies are also now banned from using ZIP codes, gender, marital status, credit scores, education level, occupations, and whether a driver is a homeowner in setting premium rates. All those are currently used.

Governor Whitmer is expected to sign the bill.