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. Jim Haadsma (D-Battle Creek) issued the following statement:
"In a negotiations process, neither party gets all either wanted, and, upon considering a proposed compromise, it’s important to emphasize the good things the negotiations process brought. By Gov. Whitmer’s negotiations with Republican legislative leaders, the negotiated SB1 prohibits auto no-fault insurers from using non-driving factors like gender or education to set premium rates. The negotiated bill too prohibits insurers from increasing no fault premium prices because of a lapse in coverage. The negotiated premium rates reductions will be guaranteed, not just hoped-for, under the negotiated bill. Drivers will have PIP choice, but a higher floor of PIP choice than before the negotiations, and, because of the PIP choice, more drivers will be insured, and more drivers will be in the insurance pool. Gov. Whitmer and Michigan legislators stepped forward and accomplished today’s compromise. Let’s go forward and in good faith make the compromise work."