Michigan Democrats Want Changes to Insurance Rates

LANSING -- Michigan Democrats say the state’s drivers have the second best safety record in the nation, and the highest seat belt usage rate, and yet have some of the highest insurance rates in the country.  They say 17% of the state’s drivers have no insurance because they can’t afford it.

They want insurance companies to get state approval before raising rates, and West Michigan Rep. Mary Valentine says they should be banned from considering credit history, education, occupation when setting rates.

They also want to ban the practice of hiking rates when drivers are involved in crashes that weren’t their fault.  Republican Rep. Larry Deshazor, who worked in the Insurance Industry says it will shift Detroit’s higher costs onto West Michigan.

The insurance industry claims the bills, which will be introduced this week, were written without their input, and it will just drive them out of state, or out of business.