Governor Jennifer M. Granholm and Office of Financial and Insurance Services Commissioner Linda Watters recently announced a proposed state rule to ban the use of credit scoring in determine insurance rates. Governor Granholm said the rule would help reduce Michigan insurance rates, which have increased greatly since 1999 when credit scoring first started to be employed by Michigan insurers. The proposed rule would reduce insurance rates 10 to 45 percent. Granholm and Watters said that the use of credit information to set insurance rates is unfair to consumers because information in credit reports is often error-riddled and is an inaccurate gauge of a person's driving safety.

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Photos courtesy of Dave Olds

April 26, 2004 Detroit, MI