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No-Fault Auto Insurance Reform Bill Approved By House Committee

A Michigan House committee has approved a two-bill package reforming Michigan’s no-fault auto insurance law.

The votes were 9-to-6, with Republicans supporting and Democrats opposing.

Republican sponsors say it’s an effort to reduce costs in the system.

Democrats voted against the legislation, fearing it will short change those who need medical help, although sponsors note that it does not eliminate the unlimited coverage now part of Michigan law.

They also emphasize that the bills now include a mandated $100 rate reduction.

Democrat-sponsored amendments to roll back rates by larger amounts, including one as high as 40-percent, were rejected by the Republican majority on the committee.

The legislation also includes a small appropriation, which effectively prohibits any referendum in the future if the bills become law.

The package now goes before the Michigan House, which reconvenes on Tuesday.

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