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Legislation to cut high auto insurance rates is advancing in Michigan

Auto insurance policy art
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The Republican-led state House early Thursday approved an overhaul that would let people opt out of mandatory unlimited medical coverage for car crashes. The Senate passed a plan earlier in the week, setting up a potential showdown with Democratic Gov. Gretchen Whitmer if a bill reaches her desk.

The House bill would let motorists forego mandatory unlimited personal injury protection, a requirement only in Michigan. Insurers would have to cut PIP rates, for five years, by between 10% and 100%. That could equal an estimated $120 and $1,200 in savings for someone paying $2,400 annually, according to Republicans' projections.

Democrats oppose the bill, saying it favors the insurance industry and would not guarantee long-term rate relief or ensure the elimination of non-driving factors in setting rates. Republicans say people should not be forced to buy unlimited coverage.