Posted by Quang Nguyen
Democratic lawmakers in Michigan are promoting proposals they say would make auto insurance more affordable and strengthen consumer protections in the state. Opponents including the insurance industry say the proposals would drive up costs for customers and are a political stunt geared toward the 2010 elections, according to Associated Press reports.
The Democratic proposals would require that companies get prior approval from the state insurance commissioner before raising rates. A driver's education level or credit history could not be used as factors in determining rates.
The proposed initiative would allow Michigan voters to weigh in on consumer-oriented insurance reforms that have saved California drivers an average of $3 billion per year since being enacted in 1988, according to consumer advocacy groups Consumer Watchdog and Consumer Federation of America (CFA).
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