Michigan Continues Push for Affordable Auto Insurance

For most of 2009, various Michigan residents and organizations have been pushing for more affordable auto insurance premiums for state drivers. Recently, we reported that a coalition was pushing for a 20 percent discount in rates to be placed on the 2010 ballot. Now, legislative officials are making a push to protect consumer protections and more affordable coverage.

Recently, State Rep. Dian Slavens (D-Canton) announced her support of a plan to create new consumer protections that would essentially force the auto insurance industry into accountability when it comes to auto insurance pricing. She is also pushing for the industry to be more transparent in the guidelines and prices.

As a part of her reform suggestions she would like to:

  • Shine a spotlight on unfair pricing practices found in the industry
  • Make insurance more affordable by allowing the Insurance Commissioner to have final say over rate increases
  • Give the commissioner power to order refunds to consumers
  • Eliminate excessive rate hikes and base insurance rates on a driving record as opposed to credit scores, occupation or education

Slavens blames the state’s weak consumer protection laws for allowing auto insurance companies to overcharge its residents. She noted that if drivers are required to purchase auto insurance by law, companies should be required to only offer fair and affordable prices to drivers.