What’s Wrong With Auto Insurance in Michigan

(and What We Can Do About It)

The Issue at Hand

It’s no secret that Michigan’s no-fault auto insurance system has problems. Michigan drivers pay some of the highest insurance premiums in the country.

Premiums are so costly, in fact, that an estimated one in five vehicles in Michigan is driven by an uninsured driver.

No other state in the nation requires drivers to purchase coverage that provides unlimited benefits — this despite the fact that only a tiny fraction of drivers will ever cash in on those benefits.

Even the primary purpose of using a no-fault system — reducing lawsuits and court costs — no longer holds in Michigan: Auto-related lawsuits are on the rise.

Clearly, reform is needed.

A Viable Solution

The Michigan Legislature appears ready to tackle this issue and pass reforms that would work to drive down premiums in Michigan. Senate Bill 1 would institute several changes that would be beneficial for Michigan drivers. It would: