LANSING — Following weeks of bipartisan negotiations, the House passed a sweeping overhaul of Michigan’s auto insurance system today. The final bill includes several provisions put forward by House Democrats including the elimination of non-driving rate-setting factors, guaranteed rate reductions and increased consumer protections. In response, state Rep. Sara Cambensy (D-Marquette) issued the following statement:
“After another week of negotiations to reform Michigan’s Auto No-Fault laws, we made further progress to save constituents money by passing a monumental change in our car insurance laws. Most important to me, we gave the Attorney General and the Department of Insurance and Financial Services back the authority to go after the estimated $800 million in fraudulent no-fault claims each year. This exorbitant number shows just how out-of-control fraudulent car insurance claims in Michigan have become, and why we had to send a clear message today that that fraud will not be tolerated any longer.
“Every major interest group involved in no-fault insurance took a hit with this bill. Today’s vote was a vote that the people of Michigan adamantly demanded and rightfully deserved. This bill makes big changes and is not perfect. While the work is not done and there is more we can do, this is a huge step forward for Michigan families and our state.”