LaSata supports historic plan to lower auto insurance costs

LANSING, Mich. — Sen. Kim LaSata on Friday applauded a bipartisan agreement on legislation that will significantly lower auto insurance costs for drivers throughout Southwest Michigan.

The final reform was approved by the Senate and House, and the governor is expected to sign the bill soon.

“The number one concern I have heard from Southwest Michigan residents is their ever-increasing auto insurance rates, and today I gladly cast my vote for a plan that will guarantee those costs be lowered,” said LaSata, R-Bainbridge Township. “This is a good plan that will provide real, lasting savings for drivers.”

Key components of the plan include:

  • Requiring auto insurers to provide customers with a range of personal injury protection (PIP) options, including the ability to opt-out of PIP coverage entirely if an individual has other qualified health coverage, a $50,000 policy for Medicaid enrollees, a $250,000 policy, a $500,000 policy, and an unlimited medical benefit policy;
  • Reducing the annual Michigan Catastrophic Claims Association fee by 80% for all above options other than unlimited;
  • Strengthening the insurance fraud division within the state Department of Insurance and Financial Services to empower law enforcement to crack down on auto insurance fraud;
  • Ending excessive health care costs related to auto insurance claims by implementing a fee schedule to cap the amount providers can charge insurers; and
  • Eliminating nondriving rating factors, such as sex or marital status, to ensure a level playing field.

Michigan drivers pay the highest auto insurance rates in the country — 83% higher than the national average according to an October 2018 report. A University of Michigan study also said that auto insurance rates are unaffordable in 97% of the state’s ZIP codes.

Senate Bill 1 awaits the governor’s signature.


Editor’s note: Audio remarks from Sen. LaSata on the bill’s passage will be made available today at