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GOP-Led Senate Adopts Auto Insurance Overhaul

Cars on freeway

The state Senate Tuesday approved a bill to change the rules governing how auto insurance is sold in Michigan. As we hear from Capital Bureau Chief Rick Pluta, the bill would place new caps on medical benefits for people who don’t buy additional coverage.

Critics say this Republican plan would leave drivers who would be hurt the most by high medical bills with the least protection.

Senator Adam Hollier of Detroit agrees, but was still one of only two Democrats to vote for the bill. He says his city has some of the highest insurance rates in the country, and it’s past time to do something.

“Though this is the first step, it had better not be the last.”

Hollier says future steps should include stronger protections against red-lining and a rate rollback guarantee.

The bill now goes to the state House.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
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