LANSING, Mich. (June 17, 2026) — Today, the Senate Committee on Finance, Insurance, and Consumer Protection advanced Senate Bills 245 and 328, legislation sponsored by Sen. Jeff Irwin (D-Ann Arbor) to protect insurance consumers and lower car insurance rates in Michigan, which are among the highest in the nation.

“Car insurance is outrageously expensive in Michigan, and we need to reduce rates and limit expensive litigation,” said Sen. Irwin. “This legislation will immediately lower our state’s infamously high auto insurance rates by 10% and reduce unnecessary lawsuits by removing the incentive to deny claims, even when the claims are valid.”

Senate Bill 328 would provide direct cost relief for drivers, mandating premium reductions of at least 10% without reduced benefits. Senate Bill 245 would require insurers to honor their contracts and obligations in good faith, providing a right for consumers to have their claims investigated properly and fairly. Current law does not provide an opportunity for consumers to pursue civil action when insurers improperly deny claims, even when it is determined that the insurer knew or should have known that the claim was valid. SB 245 says that when a customer can prove that the insurer denied coverage when they knew or should have known the claim was covered, there are penalties for the insurance company.

“If we continue to encourage insurers to deny and delay claims that are obviously valid, we force consumers and the insurance companies to sue, raising the costs for everybody,” said Sen Irwin. “By instead creating an incentive to pay claims fairly, we can reduce the problem of unnecessary litigation costs.”

This legislation is part of Michigan Senate Democrats’ broader A Michigan You Can Afford agenda — which includes plans to make groceries, gas, and other household needs more affordable, cut utility bills, lower healthcare costs, and more.

Senate Bills 245 and 328 now head to the full Senate floor for consideration.