Governor, GOP leaders on path to reduce no-fault car insurance rates

LANSING, Mich. (FOX 2) - There was a major development Thursday on the 30-year attempt to reduce no fault car insurance rates, and while there is no deal yet, for the first time the governor and the two GOP leaders are on a path to get there. 

The GOP speaker Rep. Lee Chatfield could have confronted the governor and jammed a no fault car insurance plan through the House sending it to her to be vetoed. It would have been ugly. But instead there are meaningful negotiations going on so rather than jam the governor, the GOP leaders will continue to talk with her.

"Because of those ongoing conversations and productive conversations we're having, we've decided not to move a bill today in good faith effort in an attempt to reach a consensus to drive down car insurance rates," he said.

The Republican leaders report that for the first time, the governor has put some concrete offers on the table and may be giving drivers a choice on the level of catastrophic insurance they want -- perhaps at the $250,000 level.

"The governor has finally, with her team, presented some things to us that actually move in a direction that we can have some optimism that we can get to a bill signing in the not too distant future," said Senate leader Sen. Mike Shirkey.

Now the fact they will continue to talk may not seem like much to weary drivers who demand rate relief, but this is huge. For the first time in over 30 years, a governor and the GOP leaders are inching toward a deal with an air of confidence.

"By the end of the day, and by the end of the conversation, we're going to find a consensus on how we can deliver real rate relief," Chatfield said.