Rep Lower commends signature of plan to reform states broken car insurance

first_img Categories: Lower News,News A proposal to fix Michigan’s no-fault car insurance system, supported by state Rep. Jim Lower, today was signed into law.The new law will bring hundreds of dollars in savings to drivers in Gratiot and Montcalm counties through lower car insurance prices – offering personal injury coverage options, combating fraud and abuse, and addressing medical costs.“I am proud to be a part of the historic 100th Michigan Legislature and the reforms within this proposal are truly historic due to the decades of gridlock that state government faced with this issue,” said Lower, of Greenville. “The Legislature took the lead on this after hearing loud and clear from residents across the state who were facing tough financial decisions because of the high cost of car insurance. They needed real rate relief and this plan delivers that.”Mandated unlimited lifetime health care coverage through car insurance plans is a primary reason why costs are so high in Michigan. The new law allows those currently using the coverage to keep it, and those who want it in the future to continue buying it – all while providing more affordable options.For the first time in Michigan’s history, drivers will be able to have a choice in their level of PIP coverage. Beginning in 2020, many will be able to opt out of personal injury protection altogether, including seniors with retiree health coverage such as Medicare and those with health insurance policies that cover car accident-related injuries. Others will be able to continue with unlimited coverage or choose PIP limits of $250,000 or $500,000. A $50,000 option will be available for drivers on Medicaid.Other reforms include:• A fee schedule to rein in runaway costs that result from medical care providers charging far more to treat car accident victims than other patients.• An anti-fraud unit will help crack down on those abusing the system, helping to further lower car insurance rates.• Non-driving factors, such as ZIP codes, home ownership and educational level, can’t be used to determine rates. 30May Rep. Lower commends signature of plan to reform state’s broken car insurance systemlast_img

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