Disagreement brews in State Capitol over auto insurance relief - WNEM TV 5

Disagreement brews in State Capitol over auto insurance relief

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LANSING, MI (CBS) -

A big disagreement brews in the State Capitol over auto insurance relief. 

Detroit Mayor Mike Duggan is pushing the state legislature to slice no-fault car insurance rates by 30 percent. However, the Senate Republican leader said the rollback is “dead on arrival.”

A reporter’s exchange with Sen. Arlan Meekhof left no doubt.

Skubick: This is DOA?

Sen. Meekhof: Dead.

Skubick: Not even consider it?

Sen. Meekhof: Dead.

Skubick: Guess it’s dead?

Sen. Meekhof: Dead.

The mayor of Detroit is pulling the levers behind the scenes to impose a 30-percent across the board rollback of no-fault car insurance rates.

He has the support of the House Republican leader who agrees with the mayor that if there is not a rate cut for drivers, there won’t be any changes to the no-fault law.

Rep. Tom Leonard said citizens want relief.

“They are fed up and sick of paying high rates, the highest in the country,” Leonard said.

Leonard agrees when the Detroit mayor’s office said if there is no relief there is no reform.

However, even if the Democratic mayor and the Republican Speaker push this through, Sen. Meekhof will kill it.

“Why would anybody accept that? That’s price fixing. When do Republicans get into private transactions and set what prices are? It should be done on risk and other factors,” he said.

Knowing the Detroit mayor, even with this major setback, he will not give in. However, he’ll need lots of Republicans to join with Democrats to do this.

“Of course there should be a rate rollback,” said Sen. Curtis Hertel Jr. “People need to benefit from it.”

However, with the Senate Republican leader standing in the way, don’t spend your 30 percent car insurance rate cut just yet.

Copyright 2017 CBS News / WLNS. All rights reserved. 

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