Democrats guarantee auto insurance savings with plan presented Thursday

Michigan House Democrats are proposing a plan they guarantee would reduce auto insurance premiums by 40 percent for most drivers.
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LANSING (WJRT) (5/16/2019) - Democrats are introducing no fault auto insurance reform that they say would “guarantee” big savings for Michigan motorists.

Their plan follows last week’s passage of an insurance reduction bill by Republicans in control of the Legislature. Gov. Gretchen Whitmer has threatened to veto the GOP plan while negotiations continue.

A big difference in the Republican and Democrat plans is how both parties approach personal injury protection coverage.

Republicans want to replace the unlimited medical coverage for catastrophic injuries with a number of personal injury coverage options, along with some other provisions.

Democrats, however, want to keep personal injury accident coverage and lower rates for seniors who may have an alternative to injury coverage with Medicaid and other lifetime retirement health care.

House Democrats say their plan lowers rates by 40 percent, primarily through ending red-lining and the use of discriminatory non-driving factors and ending insurance fraud.

"With our governor's support we're going to go back to the process that we had started which is working in a bi-partisan way," said State Rep. Sheryl Kennedy of Davison.

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