Coalition for Auto Insurance Reform Applauds Governor and Lawmakers for No-Fault Reform Efforts

Lansing, Mich. – The Coalition for Auto Insurance Reform (CAIR) supports Governor Rick Snyder, Rep. Pete Lund, and Sen. Joe Hune efforts to reduce the rising costs of Michigan’s no-fault insurance system while still providing the highest level of coverage in the country.

Today Governor Rick Snyder and lawmakers introduced plans to protect Michigan’s no-fault auto insurance system and save Michigan drivers an average of $250 per family each year by placing cost controls on medical services for auto accident victims, creating an auto insurance fraud unit to fight insurance fraud, and create a low-cost policy program for low-income drivers.

“Rare is the occasion when the legislature has the opportunity to reduce costs to consumers, job providers and insurers,” said Rob Fowler, President of the Small Business Association of Michigan (SBAM). “Even rarer is the opportunity to cut the cost of health and auto insurance. The Governor’s no-fault reform solution represents a chance to do both. SBAM applauds the administration’s diligent work to prevent a tax increase on business owners who elect to provide health coverage for their employees, and at the same time saves the state’s auto no-fault system from insolvency.”

Recent studies have revealed that Michigan drivers pay some of the highest auto insurance rates in the country, paying more than $1,000 more per car.

“We must pass these legislative reforms to preserve our no-fault system and save insurance purchasers money at a time when every dollar counts,” said Wendy Block, Director of Health Policy and Human Resources for the Michigan Chamber of Commerce. “Reducing costs and putting $750 million per year back into consumers’ hands will provide a sure boost to our economy.”

Skyrocketing auto insurance rates and out of control medical costs have forced one in five Michigan motorists to drive uninsured because they cannot afford the Cadillac insurance plan that Michigan is forcing every driver to purchase.

“As independent agents, we see on a daily basis how the increased cost of insurance has dramatically affected the consumer,” said Jeremy MacDonald, Vice President of the Michigan Professional Insurance Agents (MPIA). “While our unlimited system was ideal in theory, it has been abused over the years without any oversight. While some see this as a dramatic change, we view it as a necessary one that will still provide the best medical benefits in this country. The rollback per vehicle will help those who are currently insured and reduce the number of those who are currently going without insurance, and ensure a long-term competitive auto insurance marketplace.”

The no-fault reform plan is also expected to help small businesses cut increasing costs.

“Auto insurance is a necessary expense for small business owners and Michigan’s system makes premiums unnecessarily expensive,” said Charlie Owens, State Director of the National Federation of Independent Business (NFIB) Michigan. “We need to bring our system into line with the rest of the country if we’re going to be competitive and our members strongly support Governor Snyder’s initiative.”

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The Coalition for Auto Insurance Reform includes: The Michigan Farm Bureau, Small Business Association of Michigan, Michigan Association of Insurance Agents, Michigan Professional Insurance Agents, National Federation of Independent Business Michigan, Michigan Insurance Coalition, Insurance Institute of Michigan, Michigan Chamber of Commerce, Michigan Manufactures Association, American Insurance Association, National Association of Mutual Insurance Companies, and Property Casualty Insurers Association of America.