Stop Detroit Insurance (SB228)

Detroit auto insurance rates are unfair and unjust. Detroit Insurance, the proposed low-cost /low-benefit insurance policy for Detroit residents, is not the solution. Read on to learn more about how this proposal (Senate Bill 288) sells Detroit out to big insurance companies while still not fixing the real problems causing Detroit’s high insurance costs.  And after that, write your lawmakers and tell them to VOTE NO on Detroit Insurance. 


Detroit Insurance will put Detroit families at risk.

  • In the first year following a traumatic brain injury, the average cost of care is far more than $200,000 per person.
  • The $250,000 injury coverage included in the Detroit Insurance proposal is shared by an entire family, and can ONLY be used for critical care immediately following an accident. It does not cover post-acute rehabilitation or other important health care needs following an accident.
  • Once the injured family members are stabilized, the family is limited to a total of just $25,000 in care.

Detroit Insurance Harms Detroit Children

Under the current auto insurance laws, no child in Detroit is ever denied comprehensive medical care because their parent fails to buy insurance on the family vehicle. If Detroit parents buy Detroit insurance, their children are limited to the $25,000 cap on medical coverage.

Detroit Insurance will allow big insurance companies to shift their costs onto Michigan taxpayers.

  • Anyone suffering catastrophic injuries – such as a traumatic brain injury or spinal cord injury – will easily go through the $250,000 limit in acute care and $25,000 cap on post-acute care and rehabilitation.
  • A 2011 study by Public Sector Consultants found that capping auto insurance benefits at $50,000 would cost Michigan’s Medicaid system an extra $30 million in the first year alone. We can expect a similar cost-shift if Detroit Insurance becomes law.
  • If capping care for auto accident survivors was a bad idea at $50,000 back in 2011, then it is a very bad idea to cap auto injury care at $25,000 for an entire family today.

Detroit Insurance puts insurance companies – not your doctor – in charge of your health.

Insurance companies would get new power to take away choice from accident victims, requiring them to use the insurers’ own doctors and require pre-authorization for medical treatment, possibly resulting in delays in care.

Detroit Insurance will increase insurance costs for the rest of the state.

Anyone who buys Detroit Insurance will no longer pay into the Michigan Catastrophic Claims Association, which could result in a higher MCCA assessment for the rest of the state.

CPAN Associate Counsel, Stephen Sinas sat down with The Pulse’s Karen Dumas to talk about Detroit Insurance.