Reports say that reforms in Michigan auto insurance are within reach now more than ever as providers in the state receive preferential treatment above that of consumers and other industries. Recent reports indicate that insurance companies are exempted from the US’ antitrust laws and Michigan’s Consumer Protection Act. This means that providers can increase premium rates without a need to secure prior state approval, while the law necessitates motorists to purchase their products and services. More importantly, Michigan’s 36-year-old auto No Fault law, which experts insist needs an overhaul, can now be amended easily.
Senate Minority Leader Mike Prusi and Democratic House Speaker Andy Dillon are now starting to lobby proposed reforms to make sure of that its effects can be felt at the soonest time possible. Also, according to reports, Economic Development Committee Chair Republican Senator Alan Sanborn wrote in an open letter to his colleagues a long list of amendments and this said list includes one regarding Michigan auto insurance. In his letter Senator Sanborn notes that he pledges to make this said issue a part of the primary focus of his committee.
On the other hand, local motorist groups are expressing their gratitude that state legislation has finally picked up an issue they have been clamoring about for a long time now. Prior to actions made by Senate members, Governor Jennifer Granholm earlier introduced this month during her 2009 State of the State Address her version of the solution, which she called the “FAIR bills.” FAIR is an acronym that stands for fair and affordable insurance reform.
Industry insiders say that motorists in this part of the country pay among the highest insurance premiums in the US, even though profits of most companies are reported to be at average record levels. Premium charges continue to climb. According to a recent study conducted by the Wall Street Journal, unaffordable premiums in certain parts of the US needs to be dealt with immediately as this leads to motorists thinking of ways to drive around uninsured. This study points out that at present, an overwhelming one-third of motorists in Michigan get behind the wheel without auto policies. In addition, a long run effect of expensive premium rates includes lesser car purchases, which in turn will harm the automotive economy that provides jobs for approximately 24% of Michigan’s workforce.
According to local reports, it is about time for citizens to enjoy a relief from their premium expenditures, and reforms in the state’s auto insurance policies will certainly be an excellent Christmas gift for them.