WDET News
- New Group Calls for Auto Insurance Choice
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Apr 28, 2008Metro Desk - Link to Audio
A new coalition is pushing to change Michigan’s auto insurance laws.
The group called “Drivers for Savings” is a conglomeration of federal, state and local lawmakers as well as insurance companies, local business and community leaders.
Its effort in Lansing is to reform Michigan’s no-fault insurance laws so catastrophic medical coverage is no longer mandated.
Under the plan, drivers would choose between 50-thousand dollars, 400-thousand dollars or the current unlimited medical coverage.
June Garcia is a community activist in Detroit.
She says the current system is unfair because forces everyone to buy the “Cadillac” of coverage.
“I think it’s real important that we have a choice. That if, we want to drive a Cadillac, we will and we obviously have to pay the difference. But we also have a choice to decide to drive a smaller little car. I think those are important issues for the consumers and the citizens of Detroit.”
Supporters of the plan say the cost savings to the average driver would range between 15% and 50%.
The group says by making auto insurance more affordable, more people will be able to buy it.
Currently, 55% of Detroiters break the law by driving without insurance.