LANSING, Mich. (Oct. 22, 2025) — Today, the Senate Committee on Finance, Insurance, and Consumer Protection passed legislation sponsored by Sen. Jeff Irwin (D-Ann Arbor) that would help address car insurance rates in Michigan, which are among the highest in the nation. To lower costs for Michigan consumers, Senate Bill 329 would protect Michigan drivers by prohibiting insurance companies from charging a reinstatement fee or a higher rate as a result of a lapse in coverage. In response to today’s passage, Sen. Irwin released the following statement:
“If someone experiences a lapse in coverage because they’re sick or are having trouble making ends meet, we should make it easy for them to get insured again — not hit them with additional fees from insurance companies looking to turn a profit. At a time when everyday costs, including car insurance rates, are at an all-time high, this legislation would protect Michigan consumers, helping them afford to get back into the system and back on the road. Furthermore, all Michigan drivers pay more for these uninsured drivers. For the sake of all drivers’ rates, we need to make it easier, not harder, to buy insurance.”
People who hit hard times due to illness or unemployment often find it hard to maintain continuous auto insurance coverage. When they regain some financial stability and try to do the right thing by getting covered again, they often find that they have to pay even more than they were before. Under Senate Bill 329, drivers would still be required to carry insurance; the bill would simply remove a major barrier to restoring coverage.
This legislation now heads to the full Senate floor for consideration.