LANSING — Today House Bill 5013 received a hearing in the House Insurance Committee, testimony for which lasted the majority of the day. In the bill’s current form it would provide temporary financial relief, but only if a driver agreed to a coverage cap for future claims. In addition, in HB 5013’s current language there is no provision guaranteeing an extension of the rate reduction beyond five years. In response, state Rep. Sherry Gay-Dagnogo (D-Detroit) issued the following statement:

“The bill as it stands promises rate reductions, yet when examined more carefully, it falls short in delivering those savings to all Michigan drivers with the options provided. Detroit drivers need real relief, and that will not come from a bill that forces them to compromise future quality of care for the promise of a couple extra dollars a month. Meaningful reform should instead be focused on establishing a fraud authority with consumer protections, greater transparency regarding the MCCA and insurance company rating practices and putting a stop to the discriminatory, non-driving factors insurance companies are currently using to calculate rates. All of these things, when addressed, would result in long-term rate reduction for all drivers.”