State Lawmakers Talk Auto Insurance, Roads At Thursday Town Hall

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The recently-approved auto insurance reform plan will take effect in July of next year, and at a Thursday town hall in Benton Harbor, southwest Michigan lawmakers explained how it will work. State Senator Aric Nesbitt of Lawton, the plan’s sponsor, said drivers will be allowed to pick different levels of personal injury protection, or PIP, rather than having to carry unlimited PIP coverage. Nesbitt told WSJM News which level you pick, and some other factors, will determine how much you save.

“It’s going to be dependent on what level of coverage they decide on,” Nesbitt said. “If they stay with the unlimited lifetime, it’s going to be about what they’re paying now. If they decide to opt out, it’s going to be dramatic savings. If they have PLPD, a 20 year-old Buick they don’t want comp and collision on and they decide to opt out, they could have 80% savings.”

Drivers will be able to pick levels of personal injury protection, including $500,000, $250,000, and $50,000. Nesbitt said price controls on crash-related medical needs will also make a big difference. He said special interests and others who milk the current auto insurance system are still trying to figure out what just happened. As for road funding, state Representative Pauline Wenzdel of Coloma told us lawmakers are looking at innovation.

“I know people have heard about tolls floating around, weights on trucks, things like that. Innovations in technology and how we can better spend our money and spend it in a smarter way.”

But Wendzel said the main thing lawmakers are looking at is putting all taxes collected from gasoline into the roads. State Senator Kim LaSata, also on hand Thursday, said a 2015 road funding package is now taking effect and starting to help. She said legislative leaders are brainstorming now for other sources of road money.

Pictured: state Senator Aric Nesbitt (left) and state Representative Jason Wentworth of Clare at Thursday’s town hall.