Michigan Senate Rejects Ban on Location in Setting Auto Premiums

October 30, 2009

The Republican-led Michigan Senate has killed legislation that would have banned auto insurers from considering where a driver lives when setting rates.

Democrats say the practice is unfair to motorists who pay higher premiums in urban areas even if they have good driving records.

Republicans say rates would go up elsewhere if insurers could not charge more in riskier areas with more car thefts.

The Senate voted 21-14 along party lines to reject a bill sponsored by Democratic Sen. Martha Scott of Highland Park, who has been pushing for insurance changes for years.

Republicans discharged the bill from committee without having a hearing, which drew criticism from Democrats who said the legislation at least deserved a debate in committee.