Theis Skeptical Of New House Auto Insurance Reform Plan
September 15, 2017
Lawmakers agree the auto insurance system must be reformed to reduce rates, but are proposing different ways on how to get there and a new plan was unveiled Thursday.
The package of bills is not finalized but was announced Thursday during a press conference. It was brought forward by a bipartisan coalition of 15 lawmakers who maintain the proposal would bring down auto insurance rates, including Republican State Representative Joe Graves of Argentine Township.
The proposal would not change the unlimited lifetime medical benefits provide for those involved in catastrophic car crashes but would establish a fee schedule regarding reimbursement rates. Other aspects include creating a fraud authority and limiting factors auto insurers can use to set rates.
A different plan is reportedly in the works between Republican House Speaker Tom Leonard of DeWitt, Detroit Mayor Mike Duggan and House Insurance Committee Chair, State Representative Lana Theis of Brighton Township. Details of the proposal have not been released, and Theis did not make mention of anything during an interview with WHMI earlier this week.
In a press release, Theis said they may disagree on the specifics but she was encouraged by her fellow colleagues and agrees drivers in Michigan are paying too much for auto insurance. Theis says the system must be reformed in order to reduce the cost of insurance but commented that many of the elements of the plan outlined Thursday will not reduce the cost of auto insurance, and would likely make matters worse. Theis says she looks forward to working with all of her colleagues on reforms “to address major cost drivers like a fee schedule, choice and fraud, along with other areas of our auto no-fault law.” The full press release from Theis is attached. (JM)