Representatives still working on insurance reform before July 2 changes

 (Pexels image with WLUC edits)
(Pexels image with WLUC edits) (WLUC)
Published: Feb. 10, 2020 at 4:21 PM EST
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Auto insurance in Michigan will see its first major changes in 47 years this summer, when new policies go into effect.

For many this could mean big savings, but there is work that needs to be done by the consumer.

State Representative Sara Cambensy (D-Marquette), of Michigan's 109th State House District, met with agents at the Elder Insurance Agency in Marquette Monday afternoon, hoping to learn more about how new auto insurance changes in the state will impact agents and their clients.

"We just want to make sure that what the insurance agents are telling us is working and what they see as foreseeable problems that we actually take a look at them right now before it gets time for everyone to come in and look at new packages and hopefully save some money," said Cambensy.

The Elder Agency reached out to Representative Cambensy, eager to see its issues with the new changes addressed.

"Just to have dialogue about how we are seeing things with our constituents and our insurance that we're talking with on a regular basis so we can pass on that message to her," said Ryan Nummela, owner of the Elder Insurance Agency.

Nummela cited the rule that drivers need to opt in or out of policy every single year under the new rule as a potential problem.

"If people elect not to fill out the form, essentially then the state's new bill has mandated elective defaults that will be selected for them and potentially people could see increases on their bill," said Nummela.

Another potential problem, drivers believing they will see savings when in reality they could see an increase in their premiums.

"Just make sure that you're aware of what coverage you have and if you need to buy up or buy down, find out what that means in terms of cost, but certainly protect those you love," said Cambensy.

While consumers could see savings of up to 55 percent if they opt out of unlimited medical coverage or personal injury protection, they could see costs raise elsewhere to make up for that drop.

"Drivers are going to be put in the seat, no pun intended, to really make some more options for ourselves,” said Nummela. “There's going to be a lot of changes that people are going to be educated and get informed."

Representatives in Lansing are meeting with industry professionals to get a better sense of the issues and will try to introduce improvements to the policy changes before it goes into effect on July 2, 2020.

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