Michigan is the country’s only state that requires all motorists carry unlimited medical coverage. Car Insurers have wanted for years to allow lesser and cheaper coverage, claiming it may remove the incentive for many that drive illegally without insurance due to high car insurance rates.

They have made some ground recently with a House bill passed that will allow drivers aged 65 and older who are covered by Medicare to drop unlimited medical insurance coverage, potentially saving the seniors hundreds of dollars a year.

Insurers say medical coverage is the most expensive item on a no-fault policy. A report prepared last year found that reducing medical coverage to $200,000 would reduce motor vehicle insurance premiums by 18%. Voters rejected a proposal to reduce medical coverage to $250,000 in 1992.

Supporters of the limited medical coverage believe this move may pave the way for all drivers to have the choice of reducing their medical insurance coverage in return for cheaper auto insurance rates. There is concern however that Medicare won’t cover all medical services drivers might need if they’re in a bad accident.