It's one of the few absolutely necessary expenses you have each month. It rates right up there with the electricity you use to keep your house from turning into the Arctic Circle when Jack Frost rolls through town. (Speaking of which...) You hear all kinds of things about energy conservation, effectively and efficiently heating your home and cutting back on your fuel bills. So why isn't your Michigan car insurance making the news?
You don't hear much about Michigan car insurance companies on the news because outside of certain regulatory bodies there hasn't been much to tell. Yes, everyone complains at some point or another that they're paying too much for their coverage, but that's just sour grapes. Right?
Maybe not. Studies show that over 20% of drivers are currently paying too much for their coverage, and with the tidbits that have been surfacing about Michigan insurers and the new reform measures coming your way it's not very hard to see why.
Car insurance companies are feeling the economic pinch of inflation and recession as keenly as the rest of us, and they're compensating by raising their insurance rates across the board. Because car insurance is mandatory in Michigan, and because these companies aren't restrained under the antitrust laws or the Consumer Protection Act, they're getting away with it.
Not anymore. Governor Jennifer Granholm is calling for the passage of the FAIR bills (Fair and Affordable Insurance Reform) that would ban unfair credit scoring, provide low income auto insurance to those working for wages that force them to live below poverty level and require insurers to get state approval before they can raise their rates. With the passage of the FAIR bills Michigan representatives hope to put a stop to the current free-for-all that is the Michigan auto insurance system and give drivers the fair representation and opportunity for affordable insurance they deserve.