Lawmakers push bipartisan plan to lower cost of auto insurance

(The Center Square) – Michigan lawmakers are advancing a new bipartisan proposal aimed at lowering auto insurance costs.

State Rep. Jennifer Wortz, R-Quincy, introduced a four-bill package last week that would give consumers more options in Michigan’s no-fault auto insurance system, while aligning coverage requirements more closely with those in other states.

The bills – House Bills 5886 through 5889 – are co-sponsored by both Republicans and Democrats, including Rep. Joe Tate, D-Detroit.

Under current law, Michigan drivers must carry at least $250,000 in personal injury protection coverage, the highest minimum in the country. Wortz’s plan would allow insurers to offer any level of PIP coverage statewide, including extending opt-out options to all drivers.

“If our state wants to convince people to stay here and make Michigan their home, we need to compete with our neighboring states that have significantly lower costs,” Wortz said. “The requirement that we pay double or triple the cost of a standard policy in other states is completely absurd. You’re driving away the people you’re trying to protect.”

The proposal would also eliminate the requirement that drivers reselect lower coverage limits at each policy renewal, allowing them to keep their chosen plan automatically.

In addition, one of the bills would reduce the state’s required bodily injury liability coverage from $50,000/$100,000 to $25,000/$50,000.

Supporters of the bill say that is a level more consistent with national standards.

“Michiganders continue to face some of the highest auto insurance costs in the nation, even after the 2019 no-fault reforms that were supposed to provide relief,” Wortz explained. “People across the state are overwhelmed by their everyday bills. Protecting drivers and giving them adequate care is a top priority, but requiring people who reside here to buy five times more personal injury coverage than any other state is not reasonable.”

The legislation builds on Michigan’s 2019 bipartisan auto insurance overhaul, which introduced tiered PIP coverage options and was designed to lower costs while maintaining protections. Tate was also a part of that initiative.

A 2025 report from the Michigan Department of Insurance and Financial Services found the reforms reduced costs by an average of $357 per vehicle, largely driven by savings in PIP coverage.

Gov. Gretchen Whitmer said the earlier reforms showed what bipartisan cooperation can achieve.

“In 2019, Democrats and Republicans in the Legislature and I came together to deliver historic, bipartisan auto insurance reform that lowered costs for Michiganders and made insurance coverage more accessible,” Whitmer said. “No-fault reform shows that when we work together, we can make a real difference.”

This new bill package has been referred to the House Committee on Insurance for further consideration.