An insurance trade group says a bill passed by the Michigan House of Representatives threatens to increase auto insurance costs and harm the state’s job market and economy.
The Property Casualty Insurers Association of America (PCI) says the House passed a portion of a bill package which contains what the group calls “misguided reforms,” including a prohibition on credit-based insurance scoring.
“House members passed this legislation without proper deliberation or debate, despite insurance industry offers to participate in a workgroup that would allow appropriate consideration of real ways to reduce auto insurance costs in Michigan,” said Ann Weber, PCI vice president in an announcement released by the trade group.
The bill package was introduced earlier this month and quickly passed through the House Insurance Committee. Democratic lawmakers supporting the proposals say they would make auto insurance more affordable and strengthen consumer protections in the state.
PCI maintains that supporters of the proposed auto insurance reforms have greatly misrepresented several critical facts about Michigan’s auto insurance marketplace, but lawmakers should be aware of the following: