The Michigan Legislature is considering reforms to this state’s auto insurance laws. The problem is clear: Michiganders pay more, on average, than drivers in just about any other state. House Bill 5013, introduced by Lana Theis, R-Brighton, offers several significant reforms that should drive down the price of premiums for all Michigan drivers. The most significant change in the bill is that it would give drivers a choice about how much personal injury protection, or PIP, coverage they want. Current law — entirely unique in the United States — requires all drivers to purchase an unlimited amount of PIP. Under HB 5013, drivers would have a choice of coverage: $250,000, $500,000 or the current unlimited amount. Insurance companies would also have to reduce the price of PIP coverage by at least 40 percent for drivers choosing the $250,000 option.
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Source: Auto Insurance Reforms Worth Supporting [Michigan Capitol Confidential]