According to Michigan reports, city residents will no longer have to pay expensive premium rates for auto policies as the state House of Representatives passed a bill this afternoon that is set to revamp auto insurance.
Experts say that it is about time for Michigan to be relieved from the burden of costly premiums, and in perfect timing t00, since this news will certainly be an added cause for celebration this holiday season. For many years now, average car insurance prices for drivers in the state have been way steeper when compared to national average. As per latest figures released by the Insurance Information Institute, average for Michigan stands at $2,259 while that of the US is only $1,753.
The House automobile insurance or coverage package will prohibit insurance providers and firms from using a person’s occupation as a basis for premium calculations. If the bills are finally approved by the Senate and signed by Governor Jennifer Granholm, a lot of changes will happen in the Michigan auto insurance business environment. In addition to making it illegal for insurers to use insignificant factors in determining premiums, companies will also be banned from selling information of their customers without seeking prior approval first. Reports say that there are insurance firms that sell customer data for profit to other companies and even telemarketers.
Representative Shanelle Jackson of D-Detroit said that today is going to be a start of greater days for the city and for the state of Michigan. Representative Jackson adds that the chamber is working very hard to protecting pocketbooks and hard-earned money of the citizens, especially in Detroit where costs of car insurance policies are generally more expensive than those for suburban residents.
The Michigan House of Representatives, where majority of the representatives are Democrats, has agreed that passing of this bill will result to cheaper rates and to the abolishment of unfair practices such as sudden rate hikes for good drivers who somehow get involved in car accidents. However, the House Republicans seem to differ in their opinion.
According to Republican legislators, this bill will eventually disrupt the market and has the potential of driving insurance companies out of business or to stop investing in Michigan and transfer their business to other states. One Republication Representative even said that the House has been too busy focusing their eyes on serving the public, to a point that they have forgotten that all of them will be of no service once insurance companies and firms have been forced to bankruptcy.