Government Trying to Decrease Michigan Auto Insurance Rates

State House Democrats announced last week a plan that would cut Michigan auto insurance rates and apply stricter restrictions on auto insurance companies according to the article “House Democrats Unveil Plan to Cut Auto Insurance Rates” by Chris Christoff on freep.com.

Insurance companies state that this type of regulation will result in higher premiums for drivers. The government’s plan would require insurers to offer low-cost auto insurance to drivers with lower income and good driving records. Democrats and the state Insurance Consumer Advocate, Butch Hollowell, say the insurance industry is practicing unfair pricing.

The article points out that Michigan has the second highest rates in the US just behind New Jersey. This is despite the fact that accidents and thefts in Michigan have gone down over recent years. The bill would also prohibit companies from using some discrimatory factors such as a driver’s education, their careers, or their personal credit ratings when determining auto insurance quotes.

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