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| Grewal Law, PLLC

Earlier this week, Democrats in the Michigan House of Representatives introduced a package of bills that would strengthen consumer protection and prevent auto insurance companies from engaging in unfair trade practices. The proposed law, which is made up of ten separate bills, represents a significant step toward safeguarding consumers’ interests.

Under the current law, insurance companies can consider someone’s credit history, education, and occupation when setting insurance rates. The new law would prohibit this practice, as well as prevent auto insurance companies from raising an individual’s rate following an accident if he or she was not at fault. In addition, the state insurance commissioner would have to sign off on any potential rate increases.

The new bill package essentially adopts the recommendations put forth by consumer advocates in February of this year. Despite its brutal economic climate, Michigan ranks in the top quarter of all states in terms of total auto insurance premiums.

Until now, auto insurance companies have been able to fix rates based on irrelevant and discriminatory information. Hopefully, that is about to change and consumers will be able to enjoy a fair and reasonable method of determining auto premiums.

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