For more than a decade, the insurance industry and consumer groups have locked grills over how to lower Michigan's unaffordable auto insurance rates -- especially in major cities like Detroit. Now, a proposal by state Sen. Virgil Smith, D-Detroit, to lower Detroit's auto insurance rates by allowing city drivers to purchase limited medical benefits could finally move the needle. Legislators should approve his low-cost insurance pilot program.

Smith's bill, which is still being drafted, would likely apply to Detroiters with good driving records earning less than 300% of the federal poverty level and driving vehicles valued at $20,000 or less. It would reduce minimum medical coverage to $50,000 or $100,000 for a trial period of five years.

Peter Kuhnmuench, executive director of the Insurance Institute of Michigan, said the proposed changes should save eligible policyholders 15% to 45% of their premiums, depending on coverage. The $50,000 minimum for personal injury protection would still cover 95% of claims, he said. California and New Jersey have similar programs, and Smith said he hopes his pilot would slow the exodus of Detroiters seeking lower rates outside the city.

"Let consumers choose," Kuhnmuench said. "It will demonstrate that a lower level of coverage is doable, and getting more people insured can only be a good thing."

Since 1973, Michigan has been the only state to mandate unlimited lifetime medical benefits for people injured in auto crashes. Michigan's auto insurance rates are arguably the nation's highest, with a typical driver paying more than $2,500 a year for coverage. In Detroit, where unaffordable rates force tens of thousands to drive uninsured, many pay double that.

There are many reasons insurance rates are out of control, but the rising costs of Michigan's unique mandate for unlimited coverage for injuries is one of the biggest. In March, the Michigan Catastrophic Claims Association announced that drivers will pay a record $145 per vehicle, effective July 1, to treat accident injuries that exceed $500,000 in medical care. The average personal injury claim in Michigan has more than tripled since the late 1990s.

To be sure, a $50,000 minimum for medical care might be irresponsible and unrealistic, given today's medical costs. Smith should, instead, consider a minimum of $250,000, as AAA Michigan has recommended.

But continuing to do nothing is not an option. Statewide, 17% of drivers are on the road without insurance, up from 11% in 1989. In urban areas like Detroit, up to half of the drivers are driving with no protection at all.

The state, which requires people to buy insurance, should play a role in controlling the costs. Without change, many drivers will continue to be practically forced to break the law by driving uninsured or using a phony address to get affordable coverage. Smith's plan would at least jump-start the long drive to affordable auto insurance in Michigan.