Skubick: Republican state senator calls for summer revamp of no-fault insurance

Michigan

A key Republican lawmaker is saying, for the first time, that he wants a new no-fault car insurance rate reduction package on the governor’s desk by this summer.  

The top two Republican legislative leaders have declared reducing no-fault insurance rates to be their number one issue and, for the first time, one of the key negotiators is saying getting a package in front of the governor should come sooner than later.

“I hope soon,” said Sen. Aric Nesbitt. “I think we’ll see something before summer. My goal is to get something to the governor’s desk before summer.”

The Senate is set to adjourn for the summer on June 13 which gives Senator Nesbitt about 80 days to fashion a deal that has not be finalized at this read.

Detroit mayor Mike Duggan, who hopes to deliver some Democratic votes, wants motorists to have a choice in how much insurance coverage they buy.

And Senator Nesbitt agrees, saying if you don’t want unlimited life time catastrophic care coverage, the governor should not force you to buy it.

But the Brain Injury Coaltion and Oakland County Executive L. Brooks Patterson have not signed off.

He says choice is the wrong way to go.

Some pro-consumer groups argue any deal must include a guarantee that if there are savings that the insurance companies will promise to share some of them with motorists.

But the industry has turned that down and Mr. Nesbitt agrees.

He says once you introduce competition into the insurance system, the market will drive down the costs for drivers. “Those costs will go down if we provide power to individual drivers to have choice. It will be if you believe in the free market, there will be a cost savings.”

House and Senate negotiators are working with the health care industry, the trial lawyers and insurance companies to find a deal, which for over 30 years has never been found.  

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