A new plan is in the works to bring down Michigan’s expensive auto insurance rates. It could be rolled out as soon as Tuesday.
State House Speaker Tom Leonard dropped some hints about the proposal this past weekend.
He was on a panel at a Republican Party conference on Mackinac Island.
Leonard said giving consumers the option to choose how much coverage they can afford, and limiting what hospitals can charge for treating accident victims are both important.
He says so is making sure consumers will see rate relief.
“If we are going to get cost control, if we are going to get real choice, and there’s going to be real savings, that money needs to be passed along to the consumer," said Rep. Leonard.
Detroit Mayor Mike Duggan has been working with the Rep. Leonard to develop a plan. His city has some of the highest auto insurance costs in the country. But Duggan says it’s not just a Detroit problem.
“In Michigan right now, you either have the most-expensive car insurance in America or you’re driving illegally," said Mayor Duggan. "That’s a fundamental civil rights issue. That’s what we’re going after.”
Leonard’s been working on the plan with Detroit Mayor Mike Duggan.
Detroit has some of the most expensive auto insurance rates in the country.
Previous efforts to lower the cost of car insurance have failed over the issue of mandating rate rollbacks and repealing unlimited medical benefits for accident victims.