FAIR Bills Bring Michigan Car Insurance Rates Back Down Where They Belong

  Every action has an equal and opposite reaction, right? Michigan drivers will soon have the chance to finally see government step in and take action against many of the largest car insurance companies in the state. The FAIR bills will spur a new revolution in insurance reform and bring the cost of Michigan car insurance back down where it belongs! Did you know that car insurance companies aren’t restricted under either the antitrust laws or the Consumer Protection Act? As it stands right now, these companies are allowed to raise their rates as much as they want, whenever they want, as long as they’re still operating within state mandated guidelines-and several companies have petitioned to be released from those! For years Michigan drivers have complained about paying too much for their car insurance, complaints that have been dismissed as sour grapes by non-listening hears. They’re listening now. “It doesn’t add up,” Michigan State Representative Barb Byrum and consumer advocate Melvin Butch Hollowell stated in an interview with Freep.com. “Michigan leads the nation in reducing serious car crashes, which are down 54%. Our drivers also have the highest rate of seat belt use in America: 97.2%. The number of accidents involving seniors is at its lowest level since the 1960s, and the number of vehicle miles traveled is at its lowest level since the 1980s. Yet premiums continue to climb.” Governor Jennifer Granholm is calling for the passage of the FAIR bills (Fair and Affordable Insurance Reform) that would ban unfair credit scoring, offer low income auto insurance for those working for wages that force them to live below poverty level and require insurers to get state approval before they can raise their rates. Officials hope that FAIR will bring Michigan’s exploding car insurance costs under control and put a stop to the rapidly rising number of drivers choosing to hit the streets uninsured (and play chicken with Murphy’s Law in the process) because the cost of car insurance is out of their reach. At the moment, the number of uninsured drivers (those without any insurance whatsoever) is sitting at an alarming 33%. In a state where car insurance coverage is mandatory for 100% of drivers, those numbers aren’t encouraging. “These reforms will achieve real savings for Michigan’s middle class,” says Byrum. “Key to achieving this reform are: bipartisan support, protection of our excellent no-fault health care coverage, and fair and equal treatment to all consumers. It can be done.” If approved, FAIR may just be the answer to the uncontrollable, unaffordable and unregulated explosion in Michigan car insurance rates that drivers have been waiting for.