Michigan Drivers Lose in No-Fault Reform Defeat

Michigan drivers continue to pay the highest auto insurance premiums in the nation

LANSING – The Insurance Alliance of Michigan (IAM) today noted that it is Michigan drivers who lost more than $1 billion a year when the House in yesterday’s late-night session couldn’t pass reforms to the state’s broken, outdated no-fault law.

“The failed attempt to reform the state’s no-fault law will ensure that drivers in Michigan continue to pay some of the highest auto insurance premiums in the country,” said Pete Kuhnmuench, executive director of the Insurance Alliance of Michigan. “Lawmakers had a chance to deliver real reform to their constituents who have been clamoring for relief, however many caved to special interests who profit from Michigan’s broken, outdated no-fault system.”

House Bill (HB) 5013 would have delivered Michigan drivers savings of more than $1 billion a year by cracking down on fraud and abuse, reining in hospital overcharging and giving consumers a choice in their level of medical coverage. Seniors could have saved as much as $1,000 a year under HB 5013.

“We want to thank lawmakers who heard their constituents’ demands and voted ‘yes’ to reform Michigan’s broken, outdated auto no-fault system and those who voted ‘’no’ will be held accountable by their voters,” said Kuhnmuench.


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