Michigan car insurance plan includes premium cut - 13abc.com Toledo (OH) News, Weather and Sports

Michigan car insurance plan includes premium cut

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LANSING, Mich. (AP) - House Republicans are proposing a revised overhaul of Michigan's auto insurance system and to guarantee a 10 percent cut in premiums for two years.

The plan unveiled Thursday does away with unlimited medical benefits for people catastrophically injured in car accidents.

Most drivers could instead buy $10 million in personal injury protection, and proponents say nobody should reach the cap.

Low-income motorists could pick a cheaper option covering up to $50,000 in medical expenses. Motorists' health insurance or Medicaid could pay for treatment when caps are hit.

Gov. Rick Snyder helped unveiled a proposal to cap medical coverage at $1 million last April, but the legislation stalled.

Michigan is the only state that offers unlimited medical benefits for catastrophic injuries and rehabilitation. It costs motorists $186 a year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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