Detroit Mayor Mike Duggan has released the following statement on bipartisan Driver’s Choice auto insurance legislation to reform Michigan’s no-fault car insurance being passed out of the House Insurance Committee this morning:
Today, drivers in Michigan are one step closer to finally having choice in their auto insurance, and the opportunity for significant reductions in their rates, after the House Insurance Committee today approved the Drivers Choice Insurance Reform bill by a 9-5 vote. I would like to thank the members of the committee for their leadership in moving this important legislation forward.
HB 5103, sponsored by State Rep. Lana Theis, R-Brighton, and backed by House Speaker Tom Leonard, would allow drivers the option to buy insurance policies with $250,000 or $500,000 in health care coverage, or keep the current unlimited health care. Drivers who opt for $250,000 in health coverage would see an average 40% rate reduction.
I would like to personally thank Rep. Theis, who chairs the committee, and Rep. Joe Bellino, R-Monroe, who added an amendment that would require an average rate cut of 20% for drivers who opt for $500,000 in health coverage and a 10% cut for drivers who keep unlimited health coverage.
Together, we have presented a proposal that will result in significant savings for everyone by reining in out-of-control health care costs and stopping seniors from being gouged by paying an extra $1,000 a year in duplicate coverage they don’t need.
I look forward to the next steps in this bipartisan solution that saves drivers money and maintains the nation’s best levels of health care for Michigan drivers.