Skubick: Group lays out plan for 40% cut in auto insurance rates; not all sides buying it

LANSING, Mich (WLNS) – Michigan drivers would get a 40 percent cut in their no-fault car insurance under a bi-partisan plan unveiled by Detroit Mayor Mike Duggan and Republican House Speaker Tom Leonard.

But not everyone is signing off on the plan.

The Reverend Wendall Anthony spelled it out with a question. “Wouldn’t it be nice if we could give a Christmas gift to our moms and dads underneath their tree, a car insurance rate cut for Christmas?”

Hoping to play Santa Claus to deliver a cut in car insurance rates are Detroit mayor Mike Duggan and House Republican Speaker Tom Leonard.

The two assembled an impressive list of groups from labor, the Chamber of Commerce, the civil rights community and Democrats and Republican lawmakers who want to

(1) Mandatory 40 percent Rate Cut
(2) Future Hikes Need State OK
(3) Seniors Use Medicad
(4) Three Options for PIP

The Oakland County executive, L. Brooks Patterson, himself a victim of a catastrophic accident, does want the cap of $500,000 or $250,000 but favors the current unlimited coverage.

And Republican Senator Mike Kowall agrees.

“We’re concerned about caps. Period. A few days in the ER with a very serious injured person, you can run up a million dollars real quick.”

The president of the NAACP argues every motorist wants a rate reduction.

“Rate reduction of $1000 is in there,” says Rev. Wendall Anthony. “Choice is in there. Seniors aren’t penalized is in there. Folks unable to go to work with insurance is in.”

Also in the room were opponents from the trial lawyers, hospitals and doctors.

Josh Hovey of the CPAN Coalition explained “what the mayor proposed, unfortunately, is doing so on the backs of accident victims, brains injured who will go on Medicaid producing a huge cost shift with taxpayers paying $30 million a year every year.

The mayor wants to work with all sides to find a compromise with Christmas only 90 days away.

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