Hammoud Legislation Goes After Discrimination in Auto Insurance

Bill seeks to level playing field among ratepayers
Thursday, May 18, 2017

LANSING — State Rep. Abdullah Hammoud (D-Dearborn) has introduced House Bill 4617, which would prohibit automobile insurers from refusing to insure, limiting the amount of coverage, or charging a different rate or premium based on credit history, education, occupation or residency.

“The affordability of auto insurance is one of the most pressing issues in our state,” Hammoud said. “Many residents are forced to choose between paying exorbitant rates for auto insurance or using fragmented public transportation to simply get to work, appointments or other obligations. Ratepayers should not have to pay more because of arguably discriminatory factors such as credit score, education level or where they live.”

Southeast Michigan, including parts of Dearborn, has the most expensive automobile insurance in the state and country. HB 4617 addresses this issue by lowering the barriers that prevent residents from obtaining and maintaining auto insurance.

“I am encouraged by Lansing stakeholders and residents’ increased appetite for constructive discussions on reforming auto insurance in Michigan,” Hammoud said. “State Rep. Henry Yanez and I introduced legislation earlier this term, House Bills 4353 and 4354, to add accountability and transparency within the Michigan Catastrophic Claims Association. This new bill is a further effort to move the discussions forward in a positive direction that is fair to ratepayers.”