Skubick: Bill to cut no-fault insurance rates moves to House floor, could hit bumpy road

  • House
  • 28/10/2017
LANSING, Mich (WLNS) A bill to reduce no fault auto insurance costs has moved out of a House committee but faces an uncertain future on the House floor.

The House insurance committee voted to give insurance rate cuts based on what level of coverage you choose for the so-called PIP or catastrophic personal injury protection.

Theres a 40 percent rate reduction if you keep your unlimited personal injury protection coverage, a 20 percent break if you purchase $500,000 coverage and a 10 percent break for $250,000 coverage.

The only problem is the insurance lobby is not sure it can afford to do that.

Im concerned that theyre not based in reality, says insurance industry lobbyist Peter Kuhnmuench. We were not privy to these new amendments and we have to look at this to make sure there is not a negative impact here.

Not everybody in the room, including the trial lawyers, is for this package saying it will eliminate the ability to sue if a family is involved in a debilitating accident.

State Rep. Tim Greimel says so if a child is injured by a drunk truck driver, and the child is capped with a benefit once they hit the cap they are out of luck they have no way to recover costs and cant sue the drunk truck driver.

Detroit Democratic State Rep. Sherry Gay-Dagnogo contends drivers are being duped. This is really a shell game. This will not provide rate reductions in all areas and neither will it do it equally.

The House insurance committee chair, Rep. Lana Theis, conferring her with lobbyist for Detroit mayor Mike Duggan who is pushing this plan, argues the savings are real.

Even though some say there arent savings for everyone Rep Theis counters I dont see how that could happen if you purchase insurance.

As of now they need 55 yes votes and they have 48.
  • Source: WLNS
  • Author: House
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