Overhaul of state's no-fault car insurance system hits the brakes

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Flint (WJRT) - (11/3/17) - The State House has rejected an overhaul of Michigan's no-fault auto insurance system. Many state legislators say the package of bills didn't provide significant savings or offer enough medical protection.

It looks like we're going to be paying high car insurance rates for a little while longer. Those who opposed that package of bills say there were just too many problems with it. The bills were introduced as a way to lower astronomical rates paid by drivers, especially in cities like Flint and Detroit.

"I don't think it really addressed reforming the auto no-fault. We're trying to bring down costs. I think it was a temporary fix," said State Rep. Tim Sneller, (D) Burton.

"I thought there was a lot lacking this plan. I strongly believe it was one sided," said Joe Graves, (R) Argentine Township.

The vote last night was 63 against, 45 in favor. Those who opposed it say they were concerned protection for catastrophic claims would be weakened.

"You can't have bill that favors all the insurance companies and doesn't look out for those drivers that are injured or passengers that are injured in auto accidents," said Pam Faris, (D) Clio.

"At the end of the day I in good conscience could not support something that I don't believe really addressed they costs and protecting the drivers through their insurance," said Sneller.

Michigan drivers pay some of the highest car insurance rates in the nation. But it also has some of the best no-fault protections.

"I think you need reform. I don't think anybody argue that. But it has to be the right reform," Graves said.

Lawmakers say the issue isn't going away and they're hopeful reform will come.

"I think we all need rates that are less than what we're paying now and I think it's possible to get there without having to give up all the benefits," said Faris.

There are a number of bills that have recently been introduced that tackle the problem of high insurance rates, so reform is still a possibility.



 
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