A Michigan bill that blocks insurers from penalizing drivers with gaps in their coverage has been introduced and referred to the Committee on Finance, Insurance, and Consumer Protection in the Michigan Senate.
If passed, the law would ban Michigan car insurers from raising rates when drivers have breaks in coverage. The push comes as state officials tackle the sky-high costs of auto insurance that plague Michigan drivers.
State Senator Jeff Irwin said per WEMU, “For folks who are too poor to drive for a period, for folks who are sick and want to save some money, for folks who are incarcerated, for all sorts of reasons people might have a lapse in their car insurance, we need to make it easier, not harder for them, to get back into the pool.”
The current system traps many in a cycle – those who can’t pay face higher rates when they try to get back on track. This may contribute to a surge in uninsured vehicles on Michigan roads.
Michigan’s auto insurance woes stem from high rates. Many drivers skip coverage, breaking the law because they can’t afford the steep premiums. The committee’s action targets this core issue.
State officials keep working on fixes for Michigan’s costly car insurance. This bill marks an attempt to boost coverage rates across the state.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.