After hours of discussion, House Bill 5013 was defeated in the Michigan House of Representatives by a 63-45 vote on 
Thursday night, November 2, 2017. If passed, the proposal would have shattered Michigan no-fault insurance as we currently know it.
For the past few months, House Bill 5013 has been touted as a way to slash auto insurance rates for Michigan motorists, particularly drivers in Detroit. However, the proposal really didn’t guarantee any reduction in insurance premiums. Instead, it took away Michigan car accident victims’ rights and gave more power to the auto insurance companies.
“After a long night at the Capitol, I am happy to report that the horrible no-fault reform bill, HB 5013, failed to pass,” Lansing car accident attorney Stephen Sinas, a member of the Coalition Protecting Auto No-Fault legal team, said after the bill’s defeat. “Thanks to all who took the time to send in the petition [against the bill] and get the word out.”
Stephen added, “No-fault reform will continue to be an issue. Hopefully, we can move toward much more sensible reforms that will work to make the system better for everyone.”
Why Was House Bill 5013 Defeated?
House Bill 5013 was pushed by Detroit Mayor Mike Duggan, House Speaker Tom Leonard, Rep. Lana Theis and the insurance industry. Basically, it would have destroyed Michigan’s no-fault insurance system. Here’s how.
- Authorized limits on all no-fault PIP benefits.
- Drastically changed coverage for injured children.
- Prohibited any victim of a reckless, negligent or drunk driver to recoup uncovered medical expenses from the at-fault driver.
- Severely cut family-provided attendant care benefits.
- Did not guarantee insurance rate reductions.
- Did nothing to help eliminate abusive and unfair insurance practices.
- Placed a heavier financial burden on Michigan taxpayers.
- Allowed senior citizens to opt out of coverage.
- Limited the benefits recoverable by a motorcyclist injured by a reckless or negligent driver who’s insured under a limited no-fault policy.
- Gave insurance companies more power and more control over a patient’s medical care.
- Took away the legal rights of patients.
- Provided careless insurance agents immunity from any liability.
- Would have caused the financial ruin of many Michigan families.
What Representatives Said About House Bill 5013
Here are some comments from House of Representatives members who voted “NO” on House Bill 5013:
- “Let’s be plain. There is NO guaranteed rate reduction in this bill.” ~ Rep. Brian Elder
- “One-sided HB 5013 defeated. It’s time for all parties to come to the table in good faith for a real solution to auto rates.” ~ Rep. Christine Greig
- “This is bad legislation paid for by insurances companies with no guarantees of rate relief only cuts benefits.” ~ Rep. Tom Cochran
- “They [accident victims] do not deserve to be shifted to the welfare rolls just because they’ve been hit by a drunk driver.” ~ Rep. Brian Elder
- “Michigan deserves better.” ~ Rep. Stephanie Lily
- “[A] fake reform package pushed by the insurance industry.” ~ Rep. Darrin Camilleri
- “Let’s take up Fair and Affordable reforms.” ~ Rep. Jeremy Moss
- “House Bill 5013 is a bad bill. But there IS a solution.” ~ Rep. Sam Singh (referring to the recently introduced Fair and Affordable No-Fault Reform Package)
Stay with Sinas Dramis and the Auto No-Fault Law Blog for updates on the no-fault reform efforts, as proposals continue to make their way through the Michigan Legislature.