Talk on Planned Michigan Car Insurance Changes Heats Up


Debates and discussions about the proposed changes on Michigan auto insurance policies heat up as both sides presented their cases in the legislation’s latest session. According to reports, both the proponents and those who are against it firmly believe what they fighting for are for the benefit of the consumers and the welfare of the state’s insurance environment as a whole.

Talk on Planned Michigan Car Insurance Changes Heats UpLawmakers in Michigan who are lobbying for the state policy amendments said that they are promoting proposals that would make car insurance more affordable and will enhance the quality of service and protection provided to consumers across the state. On the other hand, those who are against any insurance changes argue that the said proposals will only boost insurance costs and increase premium rates for customers. Lawmakers against the proposal even said that the changes are simply part of a political stunt carefully planned by those who have plans of making a good name for the elections next year.

According to reports from the Associated Press, the proposal calls the following changes to be made:
•    Mandating all insurance providers to secure a prior approval from the Michigan insurance commissioner regarding plans for increasing premium rates. Companies need to apply for an authorization first before they can change premium charges.
•    Banning the use of zip code, marital status, driver’s credit history, and education level as factors in computing for premium rates
•    Allowing registered voters in the state to participate and have a role on consumer-based insurance reforms

According to studies conducted by the Insurance Information Institute, car insurance rates in Michigan are approximately 12% more expensive than the US average. Legislators said that it is about time for Michigan motorists to be spared of carrying the burden of very expensive premium rates. Meanwhile, consumer advocacy groups in Michigan released a statement saying that the proposed changes can lower the existing rates in Michigan by up to roughly 20%.

On the other hand, the reaction of the public regarding the issue seems to be cut in half. Some drivers say that the changes can be bad for the business of personal insurance providers, and once the small companies that charge minimal rates shut down, motorists will be left with the major agencies. Other drivers say that the proposals will their relief this holiday season.

While debates in the legislation on going, private companies who are against the proposal are hoping that no such changes will be implemented. According to the Property Casualty Insurers Association of America, the car insurance setting is not as healthy as it seems, and insurance providers have not been earning much profit in recent years.