Michigan is one of three states where the “no-fault” automobile insurance requires each of us to carry and pay for personal injury protection, even if it is mostly a duplication of other coverage we may have.

Apparently in 47 of the other states, I could have saved that money. But not in Michigan, Florida or New Jersey.

And our United States Congress has passed a law that requires that the auto coverage be primary and pay instead of Medicare when it is carried on the auto policy.

Read the rest of the story in the Dowagiac Daily News…

from Detroit News Feb, 16, 2008

We agree with The Detroit News that Michigan drivers need options when purchasing medical coverage through their auto insurance (“Insurance reform plan misses root of problem,” Feb. 11). Our coalition believes offering people a choice in the amount of personal injury protection they are required to buy will reduce premium rates. We have a plan — called PIP Choice — to do that.

We’re happy Gov. Jennifer Granholm acknowledged this problem in her State of the State address. Unfortunately, the state insurance advocate’s proposal lacks the urgency needed to reduce rates now. Parts of Butch Hollowell’s proposal might help slightly, but it could take years to grind through the process. Drivers need relief now.

Michigan is the only state that forces drivers to purchase unlimited medical coverage, even if they are insured through personal health plans or seniors through Medicare. This overlapping coverage and one-size-fits-all law is wasteful and costly to drivers.

Roughly 95 percent of claims in Michigan are under $50,000, yet 100 percent of Michigan drivers are forced to purchase the unlimited amount. Drivers should be allowed to choose a plan that works best for them.

At last count, 55 percent of Detroiters drive without car insurance. The dire economy coupled with the city’s astronomical premium rates will cause that number to rise and force even more motorists to drive without it.

Detroit has the highest premium costs in the country, sometimes costing up to $4,000 per year. This is outrageous. PIP Choice could reduce their premium rates up to 16 percent.

Diana Christensen

Drivers for Savings Coalition

Lansing