• IAM

IAM applauds House and Senate leaders for making no-fault reform a top priority in 2019

The Insurance Alliance of Michigan (IAM) today applauded Senate Majority Leader Mike Shirkey (R-Clarklake) and House Speaker Lee Chatfield (R-Levering) for making no-fault reform a top priority as the Legislature gaveled in its 100th session. Sen. Shirkey and Rep. Chatfield made no-fault reform the centerpieces of their messages to lawmakers on the House and Senate floors Wednesday.


“We applaud Senate Majority Leader Shirkey and House Speaker Chatfield for recognizing the importance of fixing Michigan’s broken, outdated auto no-fault system and making it a top priority this year,” said Tricia Kinley, executive director of the Insurance Alliance of Michigan. “We look forward to working with elected leaders on both sides of the aisle – in both chambers – and with Gov. Gretchen Whitmer to find a solution to bring down Michigan’s highest-in-the-nation auto insurance premiums.”


For the fifth year in a row, Insure.com ranked Michigan No. 1 for the most expensive auto insurance premiums in the country. The cost of car insurance in Michigan is nearly twice the national average and is more than double what drivers in neighboring Ohio, Indiana and Wisconsin pay for auto insurance, according to Insure.com. The reason: Michigan is the only state in the nation that requires drivers to purchase unlimited, lifetime medical benefits with their auto insurance.


To bring down the cost of car insurance for drivers across the state, IAM urges the Legislature to enact real reforms, which include:

  • Cracking down on fraud and abuse, which costs the average family hundreds of dollars a year in additional premiums.

  • Stopping medical providers from charging dramatically more for the same medical procedure than other forms of insurance.

  • Giving consumers a choice in their level of medical coverage so they can choose a level of coverage that is best for them and their family.

Sen. Shirkey speaking on the Senate floor, told lawmakers they have both an opportunity and obligation to reform auto no-fault. Meanwhile, in the House, Rep. Chatfield called the rising cost of auto insurance the single-largest issue facing Michiganders, and that it’s “saddling our families and our seniors with burdensome costs.”


“Michigan’s auto insurance system is unsustainable and unaffordable for too many drivers in our state,” Kinley said. “Now is the time to pass real reform, give consumers a choice, and make auto insurance more affordable for drivers throughout Michigan.”

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