Auto Insurance Reforms as Christmas Gifts for Michigan Drivers


As if getting a reward for being nice throughout the year, car owners and drivers in Michigan can expect a Christmas treat as amendments in state laws regarding auto insurance coverage are set to be scheduled for sessions before December ends.

Auto Insurance Reforms as Christmas Gifts for Michigan Drivers According to yearend statistics compiled by major insurance providers in the US, Michigan leads the nation in diminishing the number of grave car crashes, which have been significantly reduced by approximately 54%. Drivers in Michigan also have the highest percentage of seat belt use in the country, having a rate of 97.2%. In addition, the number of accidents caused by senior drivers is at its lowest level since the 1960s. 2009 also marks the lowest number of vehicle miles traveled since 1980s – meaning more motorists drove less and were more careful when on the road. Yet, despite all the positive attributes, premium rates continue to hike.

Local motorists groups said that it is only fair for them to be freed from the burden of very costly car insurance. True enough, drivers who have been nicer this year are getting what they deserve. During the first weeks of December when Governor Jennifer Granholm delivered her 2009 State Address, she said she would work on a fair and affordable insurance reform act, also known as “FAIR.” According to industry insiders, this is the start of changes scheduled to be made into Michigan’s current No Fault system which has been receiving a lot of criticism and blame for causing the increase of auto policy costs.

Included in FAIR are amendments that will ban unfair credit scoring, require providers to secure prior approvals before increasing premiums, and will offer affordable coverage protection for low-income drivers with excellent driving credentials. Experts say that the said reforms will definitely generate real savings for low to medium income earners in the state. According to them, if equal treatment to all drivers and bipartisan support are prioritized, then a planned positive change can certainly be actualized.

In addition to FAIR, reports say that incumbent Economic Development Committee Chair Senator Alan Sanborn will make reforms in Michigan car insurance part of his committee’s main goals. Senate Minority Leader Mike Prusi and Democratic House Speaker Andy Dillon will also be lobbying for the success of the said reform.

Lawmakers said that before 2009 ends, there is an excellent reason to be optimistic because for the first time in years, a number of supposedly opposing groups are working together to get something accomplished for the benefit of the general public.