Whitmer orders report on use of credit scores in Michigan auto insurance premiums

[Northeast Agent]

Whitmer orders report on use of credit scores in Michigan auto insurance premiums

LANSING – Gov. Gretchen Whitmer asked Wednesday for a report on the use of non-driving related factors, such as credit scores, in setting auto insurance premiums.

Meanwhile, Senate Majority Leader Mike Shirkey, R-Clarklake, said a plan to reduce Michigan auto insurance premiums — which are the highest in the nation and particularly high in the city of Detroit — will be introduced in the Legislature within days.

Whitmer instructed the Department of Insurance and Financial Services to study and report on both the use of non-driving factors in setting auto insurance premiums and the use of policies that coordinate auto insurance coverage with a driver's existing health insurance policies, which lowers the risk to auto insurers

 

[BADTROUT]

More so than lowering premium by changing the policies in think if they streamline them, you may see more insurers coming into the state. If they make it more consumer friendly, they will simply get more expensive because even more carriers will pull out.

Politicians are Doctors and Attorneys that seem to never understand the basic principal of supply and demand. Make it easier for insurers to do business in MI and you'll see lower rates because they would all want to be in that space.

 

[AZDave]

Its always the greedy insurance companies fault that the premiums in MI are highest in the nation. If only they just didn't use credit scoring, rates would be so much lower for all.

HAHAHA.

 

[BADTROUT]

Its always the greedy insurance companies fault that the premiums in MI are highest in the nation. If only they just didn't use credit scoring, rates would be so much lower for all.

HAHAHA.

It's so funny that all they have to do is look at the states that are loosely regulated or at least responsibly regulated and their premiums I bet are far lower than the "Consumer Friendly" ones. rubbish I tell ya its rubbish!

 

[Allen Trent]

The worst part about this is not only that the rates are the highest in the US for the consumers, but the combined ratio is the worst in the country & therefore carriers have the worst profits in the US even though they collect the highest premiums. Additionally, the carriers have to pay the first $580,000 of medical claims & each car insured in Michigan pays an added $220 per car to pay for the unlimited medical claims that exceed that $580,000. If Michigan allowed consumers to have only $1M in medical coverage, it would still be the #1 offering in the US. Best state in US to be a hospital, lawyer or brain injury facility for treating auto injury victims

Best thing for agents is that highest rates tend to equal highest compensation in the US for an average policy size, but carriers are having to shave commission costs as they suffer with horrible combined ratios.