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Passenger Transportation Coalition: House Bills 5718 and 5719, House Rules and Competitiveness Committee

Summary

A letter from C. Michael Doherty, Owner of Northern Michigan Wine and Beer Tours, to Chairman Jim Lilly and the House Rules and Competitiveness Committee in support of House Bills 5718 and 5719. Written as part of the Passenger Transportation Coalition, the letter states that insurance rates in the commercial transportation industry are skyrocketing and businesses are closing. It says the bills would make a person's individual auto insurance follow them and cover them, with claims of people who have no auto insurance defaulting to Assigned Claims. It states that the business paid $2,684 for annual vehicle insurance in 2020 and $8,811.37 for 6 months of vehicle insurance in 2021, and asks the committee to support HB 5718 and HB 5719.

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“Passenger Transportation Coalition: House Bills 5718 and 5719, House Rules and Competitiveness Committee.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-10-testimony-rule-2021-mike-doherty-47411-e04afca82f/, SHA-256 f22c2cde83dd09170900e86e927281a25f937ec3313e698ef1800c454883806d.

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House Rules and Competitiveness Committee
The Honorable Jim Lilly, Chairman

Dear Chairman and Committee Members:

| truly need your help. | work in the commercial transportation industry and am a part of the
Passenger Transportation Coalition, represented by GCS! in Lansing. Our industry is in dire
Straits. Our insurance rates are skyrocketing, businesses are closing, transportation options are
increasingly limited across the state, and it does not need to be this way!

We have been working on a solution that is reflected in House Bills 5718 and 5719. This policy
change would make it so that a person’s individual auto insurance would follow with them and
cover them (just like it follows already into many other vehicles). Where a person has no auto
insurance, their claims would default to Assigned Claims (which is what already happens for
other uninsured accident victims here in the state). This will help keep our businesses open and
help keep transportation options accessible and affordable,

The insurance rates we are seeing are astronomical. In year 2020, my business, Northern
Michigan Wine and Beer Tours’ paid $2,684 for the annual vehicle insurance. In year 2021, we
paid $8,811.37 for 6 months of vehicle insurance. This amount will continue to increase and
this is not sustainable.

Please support HB 5718 and HB 5719 that will address this issue.

Thank you for your time and consideration. If you have any questions, please feel free to reach
out to me or to our coalition lobbyist, Samantha Zandee (GCSI) at 517-275-6757.

Sincerely,

C. Michael Doherty, Owner

Northern Michigan Wine and Beer Tours
231 437-3339


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