LANSING — Following weeks of negotiations, the House passed sweeping changes to Michigan’s auto insurance system today. Despite efforts by House Democrats, the final bill does not include provisions to eliminate red-lining or guaranteed rate reductions that keep access to quality coverage intact. In response, state Rep. Jim Ellison (D-Royal Oak) issued the following statement:
"Today I voted no on Senate Bill 1 because it fails to deliver on the promises made to drivers who deserve a real fix to their skyrocketing auto insurance rates. I have consistently said that I would only vote for insurance reform that would keep rates in check while still ensuring that those catastrophically injured in car accidents will receive the care needed without having to go bankrupt to pay for it. This bill is not the solution. SB 1 offers a nominal decrease in rates for a few years, but then allows insurance companies to jack the rates back up, while gutting coverage to accident victims. My no vote today serves as a reminder to my colleagues that we still have work to do. I will continue working to find solutions for real rate reform in Michigan."
###