MICHIGAN – As the state House of Representatives passed a bill in the afternoon of December 24th which aims to improve automobile insurance, Michigan customers have reason to be jolly this holiday season as they may no longer be compelled to spend on expensive premium rates for their insurance.
Several gurus explain that the timing is impeccable for Michigan customers to experience a less burdensome obligation to expensive premiums as it coincides perfectly with the holiday break. For several years, car insurance prices in the state are usually pricier compared to the nationwide average. According to recent data from the Insurance Information Institute, the United States average is at $1,753 while the Michigan average is at $2,259.
Auto insurance package, as laid out in the bill, will ban insurance companies from making use of any individual’s occupation as the standard basis for calculating premium payments.
Once this bill is given the thumbs-up by the Senate and signed with the approval of Governor Jennifer Granholm, several amendments will occur in the insurance business environment in the state of Michigan.
Moreover, companies will be prohibited from selling vital customer information unless prior approval is sought first. This is because certain insurance firms have reportedly sold data from consumers with the intention of making profits via interactions with other auto companies.
Detroit Democrat representative Shanelle Jackson, revealed that December 24 should be likened as the start of greater, brighter days for Michigan. She also said that the House is exerting much effort to protect the interest of low-income earners so that car insurance policies may become more affordable, especially for those living in urban centers.
The Democrat-dominated chamber in Michigan has agreed, unanimously, that this bill will bring about more cost-effective rates and also the eventual removal of unfair business practices which includes sudden premium hikes for reputable drivers who might get involved in accidents.
Meanwhile, the chamber Republicans think otherwise. The opposing lawmakers claim that such a bill will cause auto insurance companies to lose profits and eventually go out of business. Such a scenario may even cause auto companies to stop investing in the home state and opt to relocate investments elsewhere, according to Republicans.
Moreover, another eventual scenario may involve insurance companies and other related entities forced into bankruptcy and causing deeper problems for the state. With a lack of financial machinery to provide and sustain steady tax returns, such as the automobile business-reliant Michigan state, this may pose problems and regrets for House representatives though they intend to focus on serving the public.