Michigan House Rejects Auto Insurance Reform Bill in Blistering 45-63 Defeat
The Michigan House of Representatives defeated a no-fault auto insurance reform bill Thursday night by a 45-63 vote, ending a bipartisan effort to lower rates for drivers while protecting accident victims.
The measure would have let Michigan drivers opt out of the requirement to carry unlimited medical benefits through their auto insurance for crash injuries. It also sought varying cuts in personal injury protection fees for motorists choosing less coverage.
The vote came late after more than an hour of debate in the Republican-led chamber.
A Blistering Defeat for Duggan and Leonard
The defeat is a setback for Detroit Mayor Mike Duggan and House Speaker Tom Leonard. The two worked together in a bipartisan effort to try and bring relief to drivers by lowering auto insurance rates.
Michigans premiums are the third largest in the country.
Lawmakers agree that auto insurance reform is needed in Michigan but so far have not figured out a fix.
What the Bill Would Have Done
The reform bill would have allowed drivers to choose different levels of personal injury protection coverage instead of being forced to carry unlimited medical benefits through their auto insurance.
Supporters say the bill would help drivers who face the highest premiums in the country.
Opponents say it would give insurers wiggle room to avoid guaranteed rate rollbacks and lead to inadequate treatment for people with brain and other catastrophic injuries.
Democratic Response
House Democratic Leader Sam Singh (D-East Lansing) issued the following statement:
Every member of the House agrees that Michiganders need lower auto insurance rates. House Bill 5013 was not the solution. What it was is a bad deal for Michigan drivers and accident victims. In fact, the only group that benefited from the bill was the auto insurance industry which would have seen benefits capped for accident victims and no permanent requirement to lower costs. Now that this bad bill has failed, it is time for the Legislature to consider a real solution with strong bipartisan support that would provide rate relief for all drivers without gutting benefits. I am calling on the Speaker and Insurance Committee Chairwoman to give the Fair and Affordable No-Fault Reform package a fair hearing. It is past time to sit down and get to work on the bipartisan plan that will protect car accident victims and reduce rates for everyone.
Leonards Defense
Speaker of the House Tom Leonard (R-DeWitt) also issued a statement defending his vote:
Michigans drivers are the only drivers in the country legally mandated to buy insurance they dont need, dont want, and cant afford, which has left Michigan families struggling to make ends meet with the highest auto insurance bills in the country. That is wrong, and the people of this state want it to change.
This is an important issue that many representatives of the people here in the House wanted to fix. Everywhere I go in Michigan, people ask me when we will finally do something to lower their rates. Today, I can tell my constituents I fought for and voted for a plan that guaranteed a rate rollback for every single driver in Michigan. That was the right thing to do.
The Stakes
Michigan drivers currently face the third highest auto insurance premiums in the country. The state mandates unlimited personal injury protection coverage for all drivers, regardless of fault in an accident.
The failed bill would have created an opt-out option for drivers who wanted to choose less coverage and potentially lower premiums.
The debate continues as lawmakers seek a solution that balances rate relief with protection for accident victims.