Legislation has cleared a state Senate committee seeking to lower car insurance premiums. It now heads to the floor for a vote.
The bill would prevent insurance companies in Michigan from charging customers more if they have had a lapse in previous coverage. One of the reasons the state has such high rates is the large number of people who don’t have auto insurance.
Ann Arbor State Senator Jeff Irwin says charging more to reestablish coverage is counterproductive.
“So, for folks who are too poor to drive for a period, for folks who are sick and want to save some money, for folks who are incarcerated, for all sorts of reasons people might have a lapse in their car insurance, we need to make it easier, not harder for them, to get back into the pool.”
Irwin says the high rates also discourage people with older vehicles to carry insurance, even if it’s illegal, since the premiums can be more than the value of the car itself.
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