Michigan Democrats Campaign Against Increasing Car Insurance Rates

As a result of the economic downturn, most Michigan families are now striving harder just to be able to pay the household bills. If your family can still make ends meet, consider yourself lucky as some people now don’t even have a job, due to recent downsizing of employees, to buy their basic needs. To make the situation worse, car insurance companies continue to increase their rates. Knowing that this type of plan is required by the government, it becomes an additional problem to all Michigan car owners.

For that reason, Michigan members of the House of Representatives stepped up and created a new ten bill package. This plan is similar to the program which currently exists in California. It will oblige Michigan car insurance companies to establish a low income insurance plan for struggling families with good driving records.

Furthermore, the bill asserts that insurers would no longer be able to use circumstantial data to determine a driver’s car insurance rates i.e. occupation, level of education, and individual’s credit score. However, insurance providers claim that credit scores are a reliable predictor of how a person operates once they get behind the wheel.

“Families across Detroit have suffered the worst in this economic recession, yet the insurance companies have taken every opportunity to charge Detroit residents the highest rates in the state. When people are doing everything they can to stay in their homes and keep the heat on, it’s appalling that insurance companies are using things like credit history to justify huge rate increases,” said Bert Johnson, Michigan Democratic representative.