Michigan Democrats Lay Out Auto Insurance Bills

May 22, 2013

Detroit’s Democratic state House Caucus is laying out an effort to change Michigan’s auto insurance policies.

The package of legislation was revealed during a news conference in Detroit. Republicans control the state Legislature.

Under the proposal, insurance companies couldn’t use credit history, education or occupation in determining a person’s premium. It would also mandate that insurance companies justify any rate increases and ensure that 80 percent of the premiums collected be spent on clients.

Democrats say the measure will save residents money and fight insurance industry fraud.

The legislation is an effort to counter Republican-backed legislation that would end Michigan’s unlimited lifetime benefits for catastrophically injured car-crash victims and drop car insurance rates by at least $125 less a year. That measure awaits consideration in the full House.

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