Lower rates sounds great, but is that all there is to it?

Detroiters have the highest auto insurance in the country. It’s no surprise that when a new bill was proposed that would essentially lower auto insurance rates and save almost everyone in the Detroit Metro area hundreds of dollars, most citizens and politicians were on board.

If this bill passes the Michigan State House, it will affect nearly every single driver in Michigan. The bill cuts personal injury protection rates between 10% and 100% for five years. In other words, that’s a savings of $120-$1200 per year. One of the biggest changes this bill proposes is that rates can no longer be set based on your zip code and your credit score.

Democrats take the most issue with this bill, with many saying it’s a short-term solution to a long-term issue. The bill is 82 pages long, and politicians fought over it at the Michigan State House into the wee hours of the morning today. Around 2 a.m. in the State House, there were more votes swinging towards legislating the bill rather than the alternative.

If the bill becomes law, citizens can essentially opt to pay less for their personal injury protection. Not only will there be a cap on that, but there will be a cap on how much auto insurance companies will pay you if you get into an accident; that seems to be the risk factor involved.

A local news station polled Metro Detroiters about how they’re feeling regarding this bill, and it’s clear more people want to see the change this bill calls for rather than keep their insurance rates sky high.

Now that the bill has passed through the State House, it’s headed to the Senate next.