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Bill Would Cut Michigan Auto Premiums By 20 Percent

LANSING (WWJ/AP) - Auto insurance reform could bring some relief for cash-strapped Michiganders.

Michigan drivers would no longer be required to buy unlimited medical insurance benefits to cover their injuries in case they were seriously injured in a crash under legislation aimed at lowering the state's high auto premiums by between 20 percent and 50 percent.

The plan unveiled in Lansing Tuesday would let motorists stick with unlimited coverage, or instead buy either $250,000 or $500,000 of coverage. Auto insurers would be required to cut rates for people selecting $250,000 in coverage.

The bill is backed by Republican House Speaker Tom Leonard, Detroit Mayor Mike Duggan and others trying to reduce premiums that are highest in the country.

"For 20 years, folks have been working on fixing things," Duggan said. "And today is what I believe is the best chance in a generation to finally put our differences aside and get real rate relief for Michigan drivers — and that's what we're trying to do."

The bill gives seniors options to pick their auto insurance through Medicare and not through the no fault systems -- at a savings. The bill also lays out three options for what is called personal injury protection, says WWJ Lansing Bureau Chief Tim Skubick.

Oakland County Executive L. Brooks Patterson is not in favor of the cut, notes Skubick, saying this legislation is footing the bill on the backs of the poor.

The measure would subject auto insurers to a fee schedule for health services, similarly to how health insurers' reimbursements to providers are lower for Medicare patients.

© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.

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