Michigan House Passes Auto Insurance Reform Legislation

An insurance trade group says a bill passed by the Michigan House of Representatives threatens to increase auto
insurance costs and harm the state's job market and economy.

The bill package was introduced earlier
this month and quickly passed through the House Insurance Committee.

PCI maintains that supporters of the proposed auto insurance reforms have greatly misrepresented several critical facts about Michigan's auto insurance marketplace, but lawmakers should be aware of the following:

* Credit-based insurance scoring has been shown to benefit consumers because it allows them to secure lower insurance costs.
* Michigan's annual average auto premium for liability and physical damage coverages combined is 12th highest in the nation – not the highest as supporters of the legislation have claimed.
* In fact, personal auto insurers in Michigan suffered a 10-year underwriting loss of 19.2 percent of earned premiums, while their 10-year operating return resulted in a loss of 2.4 percent of premiums.
* Legislation that could drive businesses out of the state would only lead to a further deterioration of Michigan's economy.


Detroit car insurance quotes


According to Hollowell, Michigan leads the nation in reducing serious vehicle crashes, which are down 54 percent, and Michigan drivers have the highest rate of seat belt use in America: 97.2 percent.

Among other things, the bills will ban unfair credit scoring, offer a low cost policy for the working poor with good driving records, and require insurers to get prior approval before any new rate hikes.

There is reason for optimism that we can find a way to work together, and get something done for the public good.


For more information, visit http://www.michigan.gov/lowerratesnowMichigan House Passes Auto Insurance Reform Legislation