12 Michigan Auto Insurers Pledge Rate Freeze

March 4, 2009

Michigan Gov. Jennifer Granholm’s call for auto insurance companies to freeze their rates has won over 12 companies thus far, although most of the state’s largest insurer have not consented to the freeze.

In a Feb. 3 order, Granholm asked each automobile insurance company doing business in Michigan to pledge to freeze automobile insurance rates in Michigan for a 12-month period effective immediately, but no later than March 1, 2009, while the Michigan Legislature works to enact automobile insurance reform.

As of the March 2 deadline, according to the Michigan Office of Financial and Insurance Regulation, the following insurance companies had pledged to freeze rates for a 12-month period: American Bankers Insurance Co. of Florida, American International South Insurance Co., American Reliable Insurance, Electric Insurance Co., Essentia Insurance Co., Great Lakes Casualty Insurance Co., IDS Property Casualty Insurance Co., Liberty Mutual Fire Insurance Co., Merchants Mutual Insurance Co., Meritplan Insurance Co., Pharmacists Mutual Insurance Co. and Wolverine Mutual Insurance Co.

State Farm, AAA, Progressive, Citizens, Farm Bureau and Allstate — which write 50 percent of the market– are not on the list of insurers agreeing to freeze rates.

Latest Comments

  • March 9, 2009 at 8:09 am
    Ratemaker says:
    You're right, especially here in the bottom of the soft market. However, the Michigan OFIR is inventing reasons to deny rate increases for companies that didn't agree to the r... read more
  • March 6, 2009 at 1:02 am
    AZ Ins Man says:
    Unless the named companies' rates were priced higher than actuarily justified, this makes NO sense to shareholders and/or insureds. The financial stability of the carrier coul... read more
See all comments

Add a Comment

Your email address will not be published. Required fields are marked *


More News
More News Features