Sabo on rushed Republican handout to auto insurance companies

Thursday, May 9, 2019

LANSING — With no hearings or public input, Republicans rushed through House Bill 4397 today, providing a giveaway to insurance companies in the form of loopholes to avoid guaranteed lower rates or an end to discriminatory rate setting practices. Michigan’s auto insurance industry is one of the least regulated in the U.S. with Michigan drivers paying nearly two times more than drivers anywhere else in the nation, according to a University of Michigan study. In response, state Rep. Terry Sabo (D-Muskegon) issued the following statement: 

“After eight years of failing to reduce rates on their own, Republicans joined with us in creating a methodical process to hear from families and stakeholders to finally fix Michigan’s auto no-fault insurance. That process came to a sudden halt yesterday when our colleagues reverted back to lame-duck tactics to jam through a bill with no vetting or scrutiny. I’m not going to make an important decision in the middle of the night based on the analysis of the insurance lobbyists in the hallway. We can and should do better for the people of Greater Muskegon and the state of Michigan. I am hopeful Gov. Whitmer will stand firm and veto this legislation so we can get back to work on the House Select Committee on Reducing Car Insurance Rates finding a real solution that protects benefits while guaranteeing long term rate reductions.”

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