LANSING — State Rep. Stephanie Chang (D-Detroit) has introduced House Bill 5419, which will require all auto insurance companies in Michigan to make driving-related factors the primary factor in setting auto insurance rates. Under this proposed legislation, companies must use these three driving-related factors, weighted in this order, to set rates: (1) driving record, (2) miles driven annually and (3) years of driving experience. 

“During the recent debates regarding our auto no-fault system, I spoke with hundreds of residents who asked, ‘Why can’t we do what works in other states?’” said Chang. “Michiganders, and especially residents in my district, want to pay for insurance based on how they drive — not where they live, their credit scores or what kind of education they’ve received. My legislation is based on a common-sense system in California created by a citizen initiative.”

While other factors such as ZIP codes could be considered under this bill, none would be allowed to be weighted more heavily than the three listed above, and credit scores are prohibited from affecting rates as well.

“My bill would dramatically lessen the impact that non-driving factors currently have on premiums, making coverage more affordable for many people who currently can’t afford it,” Chang said.

The bill has both Republican and Democratic co-sponsors.