Michigan Seeks to Enact Consumer Rate Relief Programs for No-Fault Insurance

On January 15, 2019, the Michigan Senate introduced a bill, Senate Bill No. 1 (“SB 1”), aimed at reducing costs under the current no-fault system. In doing so, SB 1 intends to provide rate relief for consumers, reduce the number of uninsured drivers, and incentivize more automobile insurers to write business in Michigan.

The Michigan Legislature seeks to accomplish these goals by providing consumers with greater discretion when selecting their personal injury protection limits of coverage. As a result, when purchasing an automobile policy, an individual can select the limit of personal injury protection that suits their needs, and the insurance premiums shall be adjusted accordingly. Additionally, seniors and other individuals over 62 years old with lifetime health care benefits can choose not to carry any personal injury protection coverage.

As the bill was only recently introduced, SB 1 is currently pending in the legislature. SB 1 has been referred to the Committee on Insurance and Banking. As it makes its way through the Committee, Senate, and House of Representatives, the bill is subject to changes and modifications. We will continue to monitor its progress and report on any amendments to the bill.

For any questions regarding the proposed SB 1 or any updates on its progress through the Michigan legislature, please contact Westmont Associates, Inc.