DETROIT – Residents in Michigan routinely pay the highest insurance rates in the country, and the state has a unique no-fault insurance system that many people believe needs an overhaul.

But there's little agreement on how to make the changes.

Detroit Mayor Mike Duggan is in Lansing Tuesday where he announced the plan he's been working on with the Republican leadership.

Duggan held a news conference at 10 a.m.Tuesday to announce a plan that includes these key points:

A rollback of insurance rates hovering around the 30 percent mark

Limits on what health care providers can charge for catastrophic injuries

Lower personal injury protection policies instead of the current unlimited benefit

See more details below.

On the eve of Duggan's big reveal with House Speaker Tom Lenard, two Metro Detroit Democrats held town hall meetings, where they got an earful from people who think they're getting gouged.

"I've got a 2006 Toyota, and when I first got it, it was $479, and now I pay $2,200 a year for the same car," said Eileen Dowd, of Sterling Heights.

Residents sick of high car insurance rates

Residents are sick and tired of paying high car insurance rates, but Detroiters are drowning and have been getting soaked for years.

Duggan has been pushing for no-fault redeem for months, but previous attempts to reform no-fault have gone nowhere.

"The key thing is: Are the rates really going to go down?" said Rep. Henry Yanez, of Sterling Heights. "We can make changes, but are the rates really going to come down and stay down?"

Yanez was one of the representatives hosting a town hall Monday on the issue. His biggest sticking point has been capping personal injury benefits. Right now, Michigan is the only state that doesn't cap them.

Duggan's plan is just one option. Other bipartisan groups are throwing out their own plans.

Here is the Local 4 report from Monday night:

UPDATE: No-fault insurance plan would provide insurance rate cuts for Michigan drivers

This is a news release from the Michigan Legislature:

Michigan House Speaker Tom Leonard, state Rep. Lana Theis and Detroit Mayor Mike Duggan today announced a plan to reduce Michigan drivers’ car insurance bills an average of 20% — and even more for seniors — bringing significant relief to residents paying the nation’s costliest insurance premiums.

The bipartisan legislation to reform Michigan’s no-fault insurance laws is sponsored by Theis, R-Brighton, and backed by Leonard, R-DeWitt, and Duggan, a Democrat. The plan would end Michigan’s only-state-in-the-nation requirement that all drivers pay for unlimited lifetime health insurance through their auto insurers, no matter whether they already have health care coverage. Drivers who want to keep unlimited health care specifically through an auto insurance company could continue to do so.

This new plan would preserve the most generous auto insurance coverage in the nation, while driving down health care costs, rooting out fraud and abuse and reducing the rapidly growing number of lawsuits statewide that Michigan’s 1973 no fault law was supposed to prevent. The plan gives drivers options for lower rates and greater choice based on what they can afford.

“Everywhere I go traveling the state, people are demanding relief from their out-of-control auto insurance rates,” said Leonard. “Michigan drivers are paying the highest rates in the country because we are the only state that requires everyone to buy bonus medical plans many don’t want and others don’t need. The families who are trying to make ends meet with this extreme burden deserve better. They deserve a plan that makes bold, long-term reforms. They deserve a plan that puts people first, not hospital lobbyists or insurance companies. They deserve a plan that will finally deliver real rate relief.”

Michigan drivers pay the nation’s highest auto insurance premiums, averaging $2,400 a year, according to insure.com, nearly twice the national average of $1,318. In the second highest state, Louisiana, premiums average $1,921.

“It’s clear that no-fault is collapsing and not doing what it was designed to do, and that’s costing Michigan drivers dearly,” Mayor Duggan said. “People are paying too much, forcing them to cut back on other necessities so they can afford to drive. It leaves too many people driving uninsured or unable to drive at all because their insurance costs more than their car payment.”

“Our plan provides affordability, flexibility and freedom for Michigan motorists,” said Theis. “Michigan’s current no-fault system is No. 1 for all the wrong reasons. It’s time to let hard-working families and seniors choose their own PIP coverage level, saving hundreds of dollars on their premiums each year.”

Insurance rates are highest in urban areas including metro Detroit, Grand Rapids, Lansing and Flint. Detroit’s average annual premium tops $3,000, the highest of any city in America.

Drivers would be able to choose options of $250,000 or $500,000 for personal injury protection (PIP), which covers medical care in the event of serious injury during auto collisions. These options provide coverage on a per person, per accident basis. The unlimited health care option will remain for those who want to keep it. PIP often accounts for as much as 50% of an insurance policy in Michigan.

New Jersey has the nation’s second highest level of PIP coverage, at $250,000. Ten other states require $50,000 or less, and 38 states require no PIP at all.

Under the no-fault reform legislation: