LANSING — A bipartisan group of legislators in the House recently proposed a set of no-fault reforms that would significantly lower auto insurance rates in Michigan while maintaining quality coverage for drivers. The Fair and Affordable No-Fault Reform bill package is being proposed as an alternative to the insurance industry-backed plan, House Bill 5013, which failed to gain sufficient support in a vote last night in the House.

“It is no secret that Michigan residents are paying some of the highest rates for auto insurance in the nation,” state Rep. Kristy Pagan (D-Canton) said. “It is beyond time to address the high costs that Michigan drivers face, while maintaining coverage so that Michigan families do not go bankrupt as the result of a car accident. Purchasing insurance means purchasing protection, and it is crucial that individuals get the care they deserve. The plan we voted on, House Bill 5013, does not guarantee rate reduction for consumers, caps long-term coverage and prioritizes insurance industry profits over accident victims. I want residents to know that I have heard from them and take this issue seriously, which is why I support working on a package that focuses on reducing costs without sacrificing care.”

The Fair and Affordable No-Fault Reform package aims to provide a lasting fix to Michigan's auto insurance system. The Fair and Affordable package will bring fairness to insurance rates by prohibiting non-driving rating factors (including credit score, gender, occupation and education level) from being used to determine auto insurance rates; increasing transparency of Michigan auto insurance rates by requiring the Michigan Catastrophic Claims Association (MCCA) to independently and publicly verify its assessments; cracking down on fraud by creating a Fraud Prevention Authority to stop fraudulent claims; reducing lawsuits by decreasing unnecessary litigation; and lowering health care prices for accident victims by enacting a fee schedule tied to workers’ compensation rates. This plan reduces costs for both drivers and insurance companies, streamlines the claims process, and creates a rate schedule for attendant care to reduce costs while ensuring access to care.

“I encourage those interested in lowering the cost of their car insurance to check out the Fair and Affordable package,” Rep. Pagan said. “We need real reform now, and I am ready and willing to work to find a solution that lowers rates without compromising care.”