LANSING — Following weeks of negotiations, the House passed sweeping changes to Michigan’s auto insurance system today. Despite efforts by House Democrats, the final bill does not include provisions to eliminate red-lining or guaranteed rate reductions that keep access to quality coverage intact. In response, state Rep. Cynthia A. Johnson (D-Detroit) issued the following statement:
“We owe it to the families of Detroit to not settle for anything less than a complete prohibition on discriminatory rate-setting practices like red-lining. There were several bills introduced in the House to address auto insurance reform and I will support any plan that addresses the factors that would guarantee lower rates, but the only thing Senate Bill 1 guarantees is reduced coverage and continued discrimination. While this legislation prohibits the use of zip codes in determining rates, it allows for the use of credit scores and ‘territories,’ which just opens up new avenue for potential discrimination.”
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