Public Media from Michigan State University

House Insurance chair wants to tame auto ‘cost drivers’

A key figure working to bring down Michigan auto insurance rates says she’s looking at ways to tame individual ‘cost drivers’ that increase premiums.

Republican State Representative Lana Theis of Brighton chairs the House Insurance committee.

She’s looking at what she calls a “line item” approach:  identifying medical procedures that cost much more following a car accident than after, say, a bike accident.

“Those two costs are dramatically different…for what you would pay as an individual if that happened on a bicycle versus what the auto carrier would pay if it happened in a car,” she explains.

Data show Michigan drivers often pay the highest auto insurance premiums in the country.

Theis says addressing the issue is “essential,” but creating consensus on policy and reducing cost drivers will take time.

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