If you were given the option to lower the amount of money you pay for auto insurance, would you take it? It’s a safe bet that a majority of Michigan drivers would—and some, for any number of reasons, would not. But, the fact is, we should all be able to choose.

We’re hearing more and more talk about the importance of consumers being able to make a choice in their healthcare coverage. Recently, the CEO of a major hospital system serving metropolitan Detroit wrote in a local newspaper editorial that consumers should have choice in the kind of health insurance they select. People can choose healthcare plans that allow them the type of care they need and can afford. Why does the same not hold true for auto insurance?

You may be asking what choice could Michigan drivers make to lower their insurance costs, other than shopping for competitive pricing among different insurance companies. It all has to do with a little thing with a big price tag called Personal Injury Protection (PIP). PIP is the amount of medical coverage paid out if you injure someone in an accident.

Michigan drivers are required by state law to purchase an unlimited amount of PIP coverage as part of their insurance policies. Research has shown that in 95% of all accident cases in Michigan, the average cost of medical care is $50,000. If Michigan drivers could choose their level of PIP coverage, say $50,000, insurance costs could be reduced by 14 to 16 percent annually. That means a $2,000 a year policy could be reduced by $300.00.

Drivers deserve to have a choice in the level of PIP coverage they must purchase. If unlimited is our choice, we should be able to choose that. But if we want the option to purchase less PIP coverage in order to save on insurance costs, we should have that right.

Yavonkia Jenkins Executive Director,
Drivers for Savings Coalition