November 30, 2009 - Michigan's Automobile and Home Insurance Consumer Advocate Melvin Butch Hollowell today joined Michigan House and Senate Democrats to announce the "Fair and Affordable Insurance Reform," or FAIR, initiative - a package of insurance reform bills to make auto insurance rates more affordable and insurance companies more accountable.
"Michigan consumers pay the highest auto insurance rates in the country when they can least afford it. Michigan drivers are doing their part to reduce auto crashes, yet the insurance industry has raised rates 69 percent since 1991 while enjoying virtually no regulation for 30 years," Hollowell said. "Michigan consumers, whose family budgets are being squeezed by one rate increase after another, will be pleased that our legislators are working to enact meaningful insurance reform that will bring some much needed relief."
According to Hollowell, Michigan leads the nation in reducing serious vehicle crashes, which are down 54 percent, and Michigan drivers have the highest rate of seat belt use in America: 97.2 percent.
Among other things, the bills will ban unfair credit scoring, offer a low cost policy for the working poor with good driving records, and require insurers to get prior approval before any new rate hikes.
During her 2009 State of the State address, Gov. Jennifer M. Granholm called on the state legislature to adopt comprehensive auto insurance reform this year.
"The keys to achieving this reform are bipartisan support, protection of our excellent No Fault health care coverage, and providing fair and equal treatment to all consumers, no matter where they live," Hollowell said. "There is reason for optimism that we can find a way to work together, and get something done for the public good."
As Michigan's Automobile and Home Insurance Consumer Advocate, Hollowell works to educate consumers on how to protect themselves against predatory or illegal insurance practices and coordinate advocacy and educational efforts with non-governmental consumer advocacy entities and other organizations.
For more information, visit www.michigan.gov/lowerratesnow.
For more information about DELEG, please visit www.michigan.gov/deleg.
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