Bill To Reform Auto Insurance In Michigan Passes Senate Committee - WWJ Newsradio 950

LANSING (WWJ) - Legislation that supporters say would lower auto insurance rates has been approved by a state Senate Insurance and Banking Committee, and will be considered by the full Senate later today.  

State Sen. Aric Nesbitt (R-Lawton), who sponsored the bill, says the state's no-fault insurance system is in "desperate need "of reforms.

While this legislation does not set specific rates, Nesbitt says what it would do is provide drivers with a choice in their level of coverage; with an option for people age 62 and older with lifetime health care benefits to not carry certain coverage. 

This, Nesbitt said, would mean big savings for some people. 

"Somebody who doesn't have comp (comprehensive) and collision on their insurance policy, and let's say they're on a fixed income and they're an 80-year-old senior, they'd just use their Medicare, their health insurance, and they want to do a real PLPD policy, they could probably save upwards of 80 percent," Nesbitt said.

Democrats, who complained they had any input on the proposal, fear this plan would save insurance companies money without helping consumers. 

As the legislation does not indicate how much drivers would save, Sen. Erika Geiss (D-Taylor) wonders where Nesbitt is getting his numbers. 

"You talked about percentages on the savings, and it's not in the bill," Geiss said. "That language isn't in the bill...what the savings would be with these various choices that are being offered."

This is the latest effort in Lansing to reform auto insurance in Michigan after an overhaul proposed during the 2017-18 session failed in the House.

Michigan has the highest auto insurance rates in the nation; about $2,400 per year on average, which is nearly $1,000 above the national average and more than double the rates of neighboring states Ohio, Indiana and Wisconsin. Michigan is also the only state that requires seniors to buy duplicative coverage, costing them between $600 and $1,000 annually.

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https://wwjnewsradio.radio.com/articles/bill-reform-auto-insurance-michigan-passes-senate-committee

2019-05-07 14:59:01Z
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