Sen. Stamas supports auto insurance reform

LANSING, Mich.Sen. Jim Stamas on Thursday voted for Senate reforms to the Michigan auto no-fault insurance law to help improve the system and reduce costs for drivers in the state.

“Michigan drivers are paying the nation’s highest car insurance rates — costs that are increasingly putting a strain on family budgets and our economy,” said Stamas, R-Midland.

In a July 2017 report by, Michigan was named the most expensive state for car insurance for the fourth consecutive year. Michigan’s average premium is $2,394, which is over 80 percent more than the national average of $1,318.

“The high cost of auto insurance is one of the top issues I hear about from area residents,” Stamas said. “I supported this first step in making long-overdue reform to our no-fault auto insurance system in a continuing effort to provide much-needed relief to Michigan drivers.”

Senate Bill 1014 would make reforms to Michigan’s auto no-fault insurance law to help reduce costs and better protect customers in the state. It would create a new authority within the attorney general’s office to help investigate and reduce auto insurance fraud and cap benefits for people who have never paid into the no-fault system.

SB 787 would allow Michigan residents age 65 or older the option to choose a capped auto-insurance policy. Seniors who opt for the limited coverage would see their catastrophic claims assessment drastically reduced. Medicare would cover remaining medical expenses after the $50,000 limit is reached.

“This reform would help provide lower-cost options for our seniors,” Stamas said. “Many seniors worked hard to build our state and now struggle with unaffordable car insurance rates. This plan would allow them to choose a policy that works best for them — while still ensuring they have medical coverage if they have an accident.

“My goal is to achieve positive reform that recognizes the burdensome car insurance costs facing Michigan families, and I look forward to talking with the people of the 36th District about how to finally address this growing issue.”