Hune and Snyder announce auto no-fault reform

LANSING, Mich.— Sen. Hune announced Thursday with Gov. Rick Snyder that auto no-fault reform would guarantee a minimum savings of $125 per car for Michiganders.

Potential auto no-fault reform legislation aims to reform an auto no-fault system that is unsustainable long term. Currently Michigan offers the most generous insurance benefits in the country. If reforms were to pass, Michigan would still offer the best benefits in the country, twenty times higher than second place New York.

“Auto insurance rates are out of control in Michigan,” said Hune, R-Hamburg. “This common-sense reform will lower the mandatory minimum for claims in Michigan to a generous $1 million, maintaining our status as the most generous state in terms of auto insurance benefits.”

Hune was joined by Rep. Pete Lund, R-Shelby Township, and Gov. Snyder at the Capitol Thursday in a press conference announcing the savings.

Statistics show that 99.5 percent of claims are under $1 million and would be unaffected.

“The opportunity to maintain the top-rated medical benefits while saving families $250 is not an opportunity legislators often get,” Hune said. “I expect this legislation will be supported by my colleagues in the Republican caucus as a great cost-saving benefit to all our constituents.”

The average auto insurance medical claim in Michigan is more than $45,000, twice as high as the next closest no-fault state.

The auto no-fault bills are expected to be introduced soon.