Politics & Government

Whitmer: Deal Reached On Michigan Auto Insurance Reform

According to Michigan Gov. Gretchen Whitmer, a deal has been reached. Here's what she said.

Michigan Gov. Gretchen Whitmer announced a deal Friday on the state's auto insurance reform.
Michigan Gov. Gretchen Whitmer announced a deal Friday on the state's auto insurance reform. (Image via Gretchen Whitmer)

MICHIGAN — A new deal has been reached concerned the state’s auto insurance legislation, Gov. Gretchen Whitmer announced Friday.

According to reports, the Legislature is convening for a rare Friday session, when a bill is scheduled for a vote in the House and then the Senate. The vote is expected around noon Friday.

“After constructive conversations over the past week, I am pleased to announce that we have reached an agreement in concept on bipartisan auto no-fault reform legislation that will lower costs and protect coverage for Michigan drivers," reads a statement from Whitmer. "The deal guarantees rate relief for every Michigan driver; provides a choice in coverage levels; establishes more uniform and structured compensation levels for medical providers; and removes the ability of insurance companies to discriminate based on non-driving factors. I look forward to working with the legislature to pass and sign this important legislation into law."

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Detroit Mayor Mike Duggan, who has called for auto insurance reform for Detroit residents, called the deal "outstanding."

"The bipartisan auto insurance agreement announced today is outstanding. It will cut rates for Michigan drivers significantly, and we congratulate Governor Whitmer and the Republican and Democratic leadership for coming up with an excellent bipartisan deal," reads a statement from Duggan on Friday.

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Speaker of the House Lee Chatfield and Senate Majority Leader Mike Shirkey released the following statement:

“The people we serve are demanding action. For far too long, drivers from Macomb to Menominee and from Kalamazoo to the Keweenaw have been absolutely fed up with paying the nation’s highest car insurance rates. They have been waiting decades for state government leaders to step up and deliver results. Today, that wait is over.

“After very productive negotiations with our governor over the past week, we now have an agreement on a bipartisan plan that will be signed into law. Today’s vote will be a significant victory for the hard-working people of Michigan that will finally fix our broken car insurance system and deliver real, meaningful rate relief for families, seniors and household budgets all over the state," the statement said.

Weeks ago Whitmer threatened to veto a previous version of the bill, saying there were no guarantees costs will go down for drivers.

Michigan is the only state to require that drivers buy unlimited personal injury protection benefits with their auto insurance policy.

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