January 7, 2010

Michigan Drivers May Be Paying Less For Insurance Coverage In The Future

Although the people of Michigan have had to pay more than residents of any other state for their auto insurance coverage in the past, new legislation might make obtaining insurance at a lower cost possible for them soon. According to Quotenow.com, the Michigan House of Representatives passed a bill before the New Year that could lower insurance prices and change how auto insurance is regulated in the Great Lakes state. Despite the fact that Republicans and Democrats still don’t see eye to eye on the issue, it could make some important changes for Michigan residents who are paying too much for their car insurance.

Quotenow.com, referencing the Insurance Information Institute, lists the United States’ insurance average at just over $1,700, while residents of Michigan are paying an average of just over $2,200 annually. Democrat Shanelle Jackson suggests that the new Michigan bill will improve the financial situation of many Michigan drivers by lowering the state’s extraordinary rates. Additionally, Shanelle states that more and more efforts are being made to aide low-income Michigan residents in their pursuit to obtain and keep affordable auto insurance.

One of the ways the bill will help Michigan residents save on their auto insurance premiums is through new regulations for determining auto insurance rates. The new legislation will force auto insurance providers to neglect career as the main variable from which auto insurance premiums are calculated. Instead, the companies will be forced to use different criteria to establish fees and costs. In addition, the new laws will help Michigan auto insurance customers protect their privacy and sustain their comfortable lifestyles. According to Quotenow.com, the new law does not allow insurance companies to sell customer information without the permission from policyholders. This means that auto insurance customers won’t have to sift through as much junk mail and e-mail, or receive annoying phone calls.

While the new legislation will mean greater savings for Michigan residents if passed by the senate and signed into law by the governor, it will also mean changes. Michigan residents looking for auto insurance quotes will likely see a reduction in the rates displayed. Because of this, Michigan residents looking to change or obtain auto insurance coverage may want to wait until after the law goes into effect. However, whether the rates continue to go down or they stay the same, Michigan residents should be sure to obtain and keep auto insurance. In addition to the extensive costs that Michigan drivers could accrue if they drive without auto insurance and get in an accident, legal fees and fines for driving uninsured are also possible.

By lowering the cost of auto insurance, Michigan auto insurance companies can help drivers stay safe.