(WXYZ) — Detroit representatives unveiled a package of bills that would end discriminatory auto insurance rate-setting practices.
The bills, sponsored by State Reps. Sherry Gay-Dagnogo, LaTanya Garrett and Isaac Robinson, would provide rate relief to drivers across the state.
“This package provides sensible reforms to our auto insurance system that will end the predatory insurance practices causing drivers in Detroit to pay the highest rates in the nation,” said Gay-Dagnogo, chair of the Detroit Caucus, in a release. “By ending these discriminatory practices, bringing transparency to the MCCA and switching to a file-and-approve system, we can lower rates for drivers across the state without sacrificing the world-class coverage our families rely on.”
House Bills 4651-4657 would ban non-driving factors like zip code, gender and occupation status from being considered in rate-setting. They would also establish a file-and-approve system to stop unreasonable rate increases and offer an opt-out of Personal Injury Protection for seniors covered by Medicare.
The package also includes disclosure requirements for the Michigan Catastrophic Claims Association and outlaws the practice of increasing rates for accidents that aren't the fault of the driver.
“Drivers across Michigan deserve auto insurance policies that put them first and that is what this package aims to do,” said Robinson. “This plan would ensure rate reductions without sacrificing benefits by eliminating the use of discriminatory practices, like red-lining, that cause the residents in Detroit and Hamtramck to pay the highest auto insurance rates in the country. Addressing non-driving factors is critical to lowering rates for families in my community.”
