Whitmer: Deal reached on Michigan auto insurance reform legislation

A deal has been reached on Michigan's auto insurance reform legislation, Gov. Gretchen Whitmer's office announced Friday.

LANSING, Mich. – A deal has been reached on Michigan's auto insurance reform legislation, Gov. Gretchen Whitmer's office announced Friday.

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 Friday afternoon.

UPDATE: Michigan House passes auto insurance reform; bill now heads to state Senate

“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."

Speaker of the House Lee Chatfield (R-Levering) and Senate Majority Leader Mike Shirkey (R-Jackson) released the following statement upon reaching the bipartisan agreement. They had to settle on a deal to win the governor’s signature on the House and Senate’s car insurance reform plan.

“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."

Detroit Mayor Mike Duggan, who has been vocal about 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.

Whitmer threatened veto

Earlier this month, Whitmer was threatening to veto a previous version of the bill, saying there were no guarantees costs will go down for drivers.

"I am only going to sign a bill that protects drivers and these bills do not do that," said Whitmer.

The governor has wanted a bi-partisan effort from both the House and the Senate.

"If they are serious about getting this done, then negotiations should commence. If they want to play politics, I've already told you what's going to happen," she said.

Michigan Gov. Gretchen Whitmer is threatening to veto Senate-passed auto insurance legislation if it gets to her desk in its current form.

About the Author:

Dave Bartkowiak Jr. is the digital managing editor for ClickOnDetroit.