Author: Anthony M. Peckbr
Source: ezinearticles.combr
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Any local resident will testify to the fact that even though Michigans accident and auto theft rates are dropping dramatically car insurance rates are still on the rise. Michigan, second only to New Jersey as the state with the highest insurance rates in the country, is paying too much for its coverage, and drivers have had enough. Now House Representatives are passing a motion that will restrict the freedom of local and national insurers to arbitrarily choose their own insurance rates and put coverage back within the grasp of Michigans low to middle class drivers.
And not a moment too soon.
The ten bill package calls for car insurance companies to no longer be able to use circumstantial facts like individual credit scores, occupation or level of education, to establish car insurance rates. If the current system is to be believed, individuals who have a high credit rating, work as engineers or teachers and have completed college are less likely to be in an accident or commit a traffic violation than anyone else out on the road.
Families across Detroit have suffered the worst in this economic recession, yet the insurance companies have taken every opportunity to charge Detroit residents the highest rates in the state, said Rep. Bert Johnson, D-Detroit. When people are doing everything they can to stay in their homes and keep the heat on, its appalling that insurance companies are using things like credit history to justify huge rate increases.
Along with the abolition of credit history as a valid character reference (laughable in the wake of this economic recession) the new set of bills would also make it impossible for Michigan car insurance companies to raise their rates without approval from the State Insurance Commissioner, who can also veto the change before it goes into effect and demand refunds for customers who are paying too much. It also puts government legislation at the forefront of the war to stop car insurance companies from raising the rates of drivers who were involved in an accident but werent at fault and mandates the creation of a low income car insurance program.
Arent they supposed to be doing that anyway?
Of course, the bills havent passed yet-and if the Michigan Insurance Coalition and the Insurance Institute of Michigan have their say in anything its not going to! These two groups are pushing to either have the bills be kicked out of the house altogether or replace them with a system that would simply lower the amount of medical protection coverage Michigan drivers are required to carry.
Stay tuned. This promises to be an interesting fight.
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pTony Peck is the Director of Busiiness Development for QuoteScout.com. For more information on a target=_new href=http://www.quotescout.com/insurance-articles/auto-insurance/Democrats-are-Finally-Taking-Steps-to-Pulverize-Michigan-Auto-Insurance-Rates-272.shtml rel=nofollowcar insurance/a legislation for Michigan drivers, visit them on the web at a target=_new href=http://www.Quotescout.com rel=nofollowhttp://www.Quotescout.com/a./pbr
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