In fact, Cayetano said some consumers could see their rates rise under the Senate's modified "pure no-fault" proposal.
"There is consensus that in many cases consumers are not likely to realize any significant rate reduction," Cayetano said in a letter to Sens. Norman Mizuguchi, Donna Ikeda and Milton Holt yesterday. "Those wishing to maintain current types of protection are likely to see rate increases."
Cayetano's remarks were based on an analysis of the Senate bill by state insurance actuary Marty Simons and several major insurers.
Holt, Senate Consumer Protection Committee chairman and author of the bill, could not be reached for comment this morning. Holt, Senate President Mizuguchi and Ways and Means Chairwoman Ikeda last week urged Cayetano for more feedback on the no-fault auto insurance reform plan.
The Senate is proposing a modified version of a "pure no-fault" bill vetoed by Cayetano last year. The Senate altered its bill to accommodate the governor's main objection by allowing lawsuits when auto accident damages exceed $250,000.
The House, meanwhile, passed a bill that would repeal the state's no-fault auto insurance system and shift medical costs in traffic accidents to victims' prepaid health insurance plans.