Michigan Pushing for 20 Percent Auto Insurance Rate Reduction

Posted in Auto Insurance

November 11th, 2009

The state of Michigan has been struggling with higher-than-average auto insurance rates for some time now, but the good news is that the state has been granted a petition for a rate cut.

On Monday, Nov. 9, the petition reduce auto insurance rates was approved by the Board of State Canvassers. If the petition receives the appropriate amount of signatures, the issue will be placed on the 2010 ballot.

Auto Insurance in Michigan

The petition to lower auto insurance rates comes in the wake of many protests that drivers in the state have been suffering from high premiums. This is especially true in Detroit, which currently has the highest auto insurance rates in the country, averaging $5,072 a year.

With many drivers in the state choosing to forgo insurance rather than pay the higher rates, lawmakers have been trying to figure out ways to make insurance more affordable.

About the Petition

So far, lower coverage has not been approved, but a petition to push for lower coverage has. In order to get the issue placed on the 2010 ballot, the petition, which is being pushed by the Fair and Accountable Insurance Rates coalition must receive more than 304,000 valid signatures, according to the Secretary of State’s Office. The firm that will be hired to collect the signatures will have 180 days from the time circulation begins to collect them all.

If it issue is placed on the ballot in 2010 and wins, Michigan drivers will receive a 20-percent break in coverage, as well as an additional 20 percent discount for good drivers. But in the meantime, drivers will need to find affordable auto insurance on their own.