Michigan Senate Rejects Ban on Location in Setting Auto Premiums

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.

Latest Comments

• November 2, 2009 at 6:43 am

  Ratemaker says:

  You are correct, the "rate banding" law was repealed. The old rules were that adjacent territories couldn't have rates more than 10% different and that the difference between ... read more
• October 30, 2009 at 1:43 am

  nobody important says:

  There used to be a banding law in MI that only allowed a certain percentage between the highest and lowest bands. I don't think that's there anymore, but I haven't worked in ... read more
• October 30, 2009 at 12:30 pm

  curious george says:

  worked for a company that raised the rates 10% twice in one year in northern mi because detroit was losing money