(WXYZ) — Pressure is mounting for lawmakers at the state capitol and the governor to agree on a plan to lower sky high rates for auto insurance in Michigan.
Now Detroit entrepreneur Dan Gilbert is leading the charge to empower citizens if lawmakers don’t deliver quickly.
For Detroit Food truck vendor Jake Marheineke, the urgent need to bring down outrageously high auto insurance rates in Michigan equates to an all hands on deck approach.
A big reason he supports Quicken Loans founder Dan Gilbert’s recent plan to put a no fault petition drive on the 2020 ballot.
But down the street Detroit City Councilwoman Mary Sheffield is urging folks not to give up on state lawmakers hammering out a better solution.
Bills passed in the state house and senate have so far lacked specific language that prohibits red lining or discriminatory practices by insurers charging more based on gender, marital status, credit rating and where a customer lives.
Detroit’s mayor has also publicly called for an end to unreasonable rates.
In part of a statement to 7 Action News, a spokesman for Gilbert says:
The current Michigan auto insurance no fault law is the single biggest obstacle in the way of retaining and attracting talent, and further growing Detroit and Michigan’s economy. The other 49 states have all found rational and smart ways to deal with auto insurance. We have said all along we will take necessary steps to prepare for a ballot initiative only if there is no resolution at the negotiating table.
Gilbert’s team adds they haven’t given up on the governor and state legislature resolving this.
that said, if his drive can gather 340,000 names in 6 months and the House and Senate pass it, it becomes law without the governor’s signature.
If lawmakers don’t pass it, it would be up to voters to decide.
Detroiters currently pay 3 to 4 times the national average, due in part to requirements for drivers to carry the max possible coverage in the event of injuries from a crash.
in part of a statement to 7 Action News, a spokesman for Governor Gretchen Whitmer says:
The Governor remains committed to auto insurance reform that protects Michigan motorists and provides financial relief.
Senator Lucido says the House and Senate are close to sending a bill to the Governor as early as next week. She’ll then have 14 days to either sign it or veto the legislation.
