LANSING — Following weeks of talks, the House and Senate passed changes to Michigan’s auto insurance system. The final bill failed to include provisions to eliminate red-lining, close insurance company loopholes or guarantee rate reductions without sacrificing quality coverage. In response, state Rep. Sherry Gay-Dagnogo (D-Detroit) issued the following statement:
“Wealthy insurance companies have preyed on the people of Detroit for years, forcing us to pay more for our insurance based on arbitrary, non-driving factors. This proposal does nothing to truly end the discriminatory practice of territorial rating or using credit to determine rates, nor does it guarantee Detroit drivers the rate reductions they need. This is an ineffective, unnecessary hand-out for insurance companies that will cut their costs at the expense of drivers’ benefits across our state. To reduce the catastrophic coverage for victims of car accidents is heartless, but to allow these benefit reductions for children is criminal. Detroiters deserve better than this, and I will continue to fight for sensible reforms to our auto insurance system that will put the people of Michigan before greedy insurance executives.”
###