Skubick: Pols can’t hit the gas on car insurance rate cut plan

LANSING, Mich (WLNS) – Critics of Detroit Mayor Mike Duggan’s no-fault car insurance rate claim it is not an across the board rate cut for every driver and the proposal was drafted by the insurance industry.

Mayor Duggan has a different take on those criticisms.

One critic said “it looks like it was completely drafted by the insurance industry. There’s nothing but favors in it for the insurance industry.”

To which Mayor Duggan answered “Mark Bernstein is a trial lawyer and he supports it.”

The trial lawyers, the health care field, insurance companies and consumers were out in force as Detroit mayor Mike Duggan begins his push for a no-fault car insurance rate cut.

Attorney and State Rep. Tim Greimel argues not everyone will get a cut.

“Only a very small number of folks would see the 40 percent savings,” said Rep. Greimel. “Only those who select very limited and inferior coverage and even then it would not be in place for five years and insurance companies could jack up the rates again.”

The mayor explains if you keep your unlimited catastrophic accident coverage there is no savings, but if you take the $250,000 coverage there is.

“And for most people in michigan, it is going to be a major reduction in their auto insurance bill,” explains Duggan.

Insurance indsutry lobbyist Peter Kuhnmeunch says there has to be savings in hospital costs before there is rate rollback and to have a state ordered rollback for five years is price fixing.

“No other industry is faced with this demand. We’ve relied on the free market to set prices. The rate rollback is going to be tough to reach.”

Five Republican members are “yes”, five are “undecided” and one is a “no”. Three Democrats are “no” and three are on the fence.

In other words, the votes to move the bill aren’t there yet.

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