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Will Detroit finally get car insurance relief?

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A bipartisan bill to lower car insurance has been introduced

Photo by Michelle & Chris Gerard

One of the biggest financial issues facing Detroit residents could soon get help from Lansing.

A bipartisan coalition, including Michigan House Speaker Tom Leonard, state Representative Lana Theis and Detroit Mayor Mike Duggan, announced legislation that would lower the cost of car insurance throughout Michigan.

Detroit’s average annual premium is the highest in America at $3,000. This prohibitive cost leads to many forgoing insurance altogether.

Michigan is the only state that requires drivers to pay for unlimited lifetime health insurance through their auto insurers, even if they’re covered through health insurance.

The new plan would offer drivers options for lower rates and greater choice based on affordability. It aims to drive down prices, decrease lawsuits, decrease health care costs, and prevent fraud.

According to a release from the city, under the no-fault reform legislation,

“Drivers would be able to choose options of $250,000 or $500,000 for personal injury protection (PIP), which covers medical care in the event of serious injury during auto collisions. These options provide coverage on a per person, per accident basis. The unlimited health care option will remain for those who want to keep it. PIP often accounts for as much as 50% of an insurance policy in Michigan.”

More information on the legislation can be found here.