Skubick: state governor and lawmakers demand reimbursement for auto insurance

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LANSING, Mich. (WLNS) – Motorists in Michigan may be waiting for a big refund on their auto insurance, but as 6 News Capitol correspondent Tim Skubick reports, just because the governor calls him, it doesn’t necessarily mean that drivers will get this.

When Governor Gretchen Whitmer signed the new no-fault auto insurance law, she and the legislature promised in law that there would be savings for Michigan motorists.

The governor, in his press release, calls on a state agency to repay $ 5 billion, which would be a check for $ 694 for every driver on the road.

The state agency is called the Michigan Catastrophic ClaimsFund with a board of directors of five insurance companies, and it reports that its surplus has doubled from last year.

Former GOP State Senator Peter Lucido attempted to withdraw money from the fund and failed. He agrees with the governor’s decision and argues that if the board does not release the money, it would be totally irresponsible.

“Not only is it irresponsible, but it’s borderline to say that we are looking at our leaders to do a job and if they are not performing then we can do without their leaders and recruit new ones,” said Lucido.

Meanwhile, the GOP chairman of the home insurance committee is in full swing.

“I’m not always a big fan of the governor, but on that, it makes sense. Michigan drivers paid the highest rates in the country, ”said state representative, chairman of chamber insurance, Daire Rendon.

“Would you be a yes if it had to go through the legislature?” Skubick asked.

“Yes. I would be voting yes,” Lucido said.

The insurance company lobby group approved the refund, saying it is part of the law that surpluses must be returned to drivers.

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