LANSING — Following weeks of bipartisan negotiations, the House passed a sweeping overhaul of Michigan’s auto insurance system today. The final bill includes several provisions put forward by House Democrats including the elimination of non-driving rate-setting factors, guaranteed rate reductions and increased consumer protections. In response, state Rep. Tenisha Yancey (D-Harper Woods) issued the following statement:

“After being reassured by Speaker Chatfield that if the relief sought by Senate Bill 1 is not delivered, then we will revisit this legislation to strengthen its language, I voted yes. However, for today, we have made progress in the right direction for auto insurance rate relief. The bill contains guaranteed rate relief for Michigan drivers by creating varying levels of rate rollback depending on the level of PIP coverage you choose. The bill also prohibits insurers from using sex, marital status, home ownership, credit score, educational level attained, occupation, or zip code from being used to establish rates on any type of auto insurance policy.

“Prohibiting these factors from being used is a step in the right direction to having your insurance rate based solely on your driving record. I am disappointed that the bills did not address territory ratings; however, the citizens in my district need relief, and this is a start. We also strengthened DIFS and moved to a file and approval system so insurance rates cannot be raised unjustly. While I would like to see greater reforms to our auto insurance system, this is a step towards fair and equitable insurance rates.”