State House Passes Auto Insurance Bill
A Michigan bill has been passed by the Democrat-controlled state House aimed at stopping the use of credit scoring in establishing rates for auto insurance.
The bill passed Tuesday by an eight-vote margin, but could face a much tougher time making its way through the Repulican-led Senate.
Supporters of the bill argue that drivers’ credit ratings, or rather the lack thereof, should not cause their insurance rates to go up. Opponents contend the proposal could backfire and lead to higher insurance rates.
Earlier this month the House passed bills that would give state regulators the authority to order refunds should it be found that customers were overcharged for their auto insurance. Also, insurance customers would have greater leeway to sue insurers.
Published on April 23, 2008
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