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.


Democratic lawmakers supporting the proposals say they would make auto insurance more affordable and strengthen consumer
protections in the state.

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:

* And despite the economy, credit scores are staying stable.
* 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.
* Michigan auto insurers are not making enormous profits.
* Michigan property casualty insurance companies provide thousands of stable, much-needed jobs in the state.


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Michigan consumers pay the highest auto insurance rates in the country when they can least afford it. Michigan drivers are doing their part to reduce auto crashes, yet the insurance industry has raised rates 69 percent since 1991 while enjoying virtually no regulation for 30 years, Hollowell said. Michigan consumers, whose family budgets are being squeezed by one rate increase after another, will be pleased that our legislators are working to enact meaningful insurance reform that will bring some much needed relief.


During her 2009 State of the State address, Gov. Jennifer M. Granholm called on the state legislature to adopt comprehensive auto insurance reform this year.

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