Michigan Governor Candidate Proposes Auto Insurance 'Opt Out' to Lower Costs as West Michigan Drivers Face Rising Premiums

Republican gubernatorial candidate Tom Leonard unveiled a policy proposal that would allow Michigan drivers to bypass the state's no-fault auto insurance system and sue at-fault drivers for their medical bills instead.

The proposal came to light during a roundtable discussion at a DeWitt diner on April 13, 2026, where Leonard outlined his plan to give motorists more choice in how they handle medical costs after accidents.

How It Would Work

Under Leonard's plan, drivers who choose not to purchase unlimited personal injury protection as part of their auto insurance policy would be able to sue at-fault drivers if they are injured in an accident.

This approach would effectively allow motorists to opt out of Michigan's current no-fault system, which requires an individual's auto insurance to always bear medical costs first in an accident.

"I don't think there's any way that these other candidates running for office are not hearing about the cost of auto insurance," Leonard said. He noted he is the only candidate to propose changes to Michigan's complex auto insurance law.

The Auto Insurance Issue

Auto insurance remains the third most prominent issue Leonard hears on the campaign trail, behind only affordability and health care.

Michigan's no-fault auto insurance law has been a source of controversy for years, with high premiums remaining a major concern for drivers even after a 2019 reform.

In 2019, Michigan reformed its no-fault auto insurance law to allow drivers to cap their personal injury protection coverage. The 2019 reform also slashed the amounts some medical providers could be reimbursed for care of the catastrophically injured.

That remained a major point of contention, and some of the cuts were later limited by a court ruling.

In the seven years since Governor Gretchen Whitmer and Republican legislative leaders enacted major reforms to Michigan's auto insurance law, the state's auto insurance rates have remained stubbornly high. Close to 30 percent of motorists have opted to no longer have unlimited medical coverage from their insurance in the event of a catastrophic injury.

Mixed Reactions

The proposal received a mixed reaction at the roundtable discussion, with some insurance agents and advocates arguing it would only add complexity and costs.

"It's just going to do nothing but increase rates," Bill Brewbaker, an insurance agent, said of expanding lawsuits, arguing it would make an already complex system even more complex.

Tom Judd from the Michigan Brain Injury Provider Council similarly noted drivers could purchase unlimited coverage for their own injuries but still be sued to pay the bills of a driver who opted for limited coverage.

"It's going to cost somewhere because people are injured and they're going to need care," Judd said.

Maureen Howell, an advocate with no-fault reform group We Can't Wait, was critical of some aspects of Leonard's plan, including the at-fault option. However, she said he was on the right track with his policy overall and praised him for putting forward a proposal.

Additional Reforms

Leonard's plan would also include reforms he said could rein in excessive lawsuits, including a cap on non-economic damages to curb nuclear verdicts.

He also proposed that insurers pay medical expenses from auto accidents within 45 days and pay five times more for late disbursements.

Leonard told Bridge Michigan that allowing disagreement and conversation is what sets him apart from other gubernatorial candidates.

"This is what happens when you actually put a real plan on the table that actually has meat on the bone," he said. "It opens you up for criticism because people can actually ask the tough questions."

Previous Reform Attempts

Before the 2026 campaign, Leonard worked on a similar auto insurance reform plan in 2017 and 2018 as GOP speaker of the Michigan House. He had worked alongside another gubernatorial contender, then-Detroit Mayor and now-independent candidate Mike Duggan.

They promised it could lower premiums as much as 50 percent a far cry from the reality for drivers today.

What Comes Next

Leonard said he would consider the issue of insurers using independent medical exams to reevaluate catastrophically injured patients and deny coverage, if the examiners are found to be biased in favor of insurance companies.

The proposal highlights the ongoing challenges around reforming the state's no-fault system to balance affordability and coverage for the catastrophically injured.

With the 2026 Michigan gubernatorial primary scheduled for August 4, 2026, and the general election on November 3, 2026, Leonard faces an uphill battle in a crowded field that includes US Rep. John James, businessman Perry Johnson, Michigan Senate Minority Leader Aric Nesbitt, former Attorney General Mike Cox, and pastor Ralph Rebandt.

The Democratic Candidate Factor

Incumbent Democratic Governor Gretchen Whitmer is term-limited and cannot seek re-election to a third term, setting up what could be a competitive general election. Michigan backed Donald J. Trump in both 2016 and 2024, but has continued to elect Democrats to statewide offices.

The governor's race will be watched closely across West Michigan, where auto insurance costs have become a growing concern for families and businesses alike.