State House votes down auto insurance bill; LaFave for, Dianda against

LANSING — State legislators voted down the bill that would cut auto insurance premiums in a late night vote Thursday.

The Associated Press reports that the Republican-controlled House voted 45-63 against House Bill 5013. The legislation would have given drivers the opportunity to choose their insurance coverage plan and save Michigan drivers up to 10 percent on their insurance bills.

In an interview with ABC 10, Representative Beau LaFave (Republican Party, 108th District) said he was in support of the bill after voters expressed their frustration with their insurance rates.

“The lawyers hate this bill, the hospitals hate this, everyone hates this bill, expect for the Michigan drivers that are going to save $2 billion a year,” LaFave said in the interview last week.

Representative Scott Dianda (Democratic Party, 110th District), however, voted against the bill. Here is the statement he released following the vote:

“I voted against House Bill 5013 because the changes in it would not save drivers money in the western U.P., or anywhere in Michigan unless you live in the city of Detroit. This bill would force drivers to accept reduced benefits and less coverage without promising them a significant long-term cut in the rates they pay for their insurance. The proposal voted on does not aggressively tackle fraud or claims handling abuse and it does nothing to require the Michigan Catastrophic Claims Association to be more open and transparent with the people. There is a bipartisan package of no-fault reform bills that deserves our attention because it offers real rate reductions while maintaining the benefits and care that car accident victims need. That Fair and Affordable Plan will give U.P. residents and drivers across Michigan the auto insurance reforms they deserve.”

Dianda also posted a lengthier statement on his Facebook page.