Senate Bill 1020 Summary

• Establishes a low-cost automobile insurance pilot program in 2-4 regions of Michigan, each covering at least one entire county with above-average insurance rates.

• Qualifies applicants who are at least 19 years old, have 3 years continuous driving experience, earn no more than 250% of federal poverty level, and meet strict driving record requirements (no major accidents, DUI convictions, or moving violations in work zones).

• Sets maximum initial annual premium at $600.00 with required personal protection insurance coverage (work loss benefits capped at 250% of monthly federal poverty level for a family of 4) and residual liability coverage.

• Permits policies only on vehicles valued at $20,000 or less, with 1-year initial term renewable annually, and allows premium payment installments as the only financing option.

• Program authorization begins January 1, 2010, becomes fully operational by August 1, 2010, and expires January 1, 2016; ties implementation to concurrent passage of Senate Bills 1022, 1024, and 1028.