LANSING – Shortly after taking part in a rally that brought over 1,200 people to Detroit to protest unfair insurance rates, State Representative Bettie Cook Scott (D-Detroit) announced she will be introducing a bill to prohibit insurance companies from employing more than 20 different territorial base rates for automobile coverage.
"At a time when we should be investing in our community, money is being sucked out by big insurance companies," Scott said. "The money our families, senior citizens and business owners pay to insurance companies is money that will never be spent in our community. We need investment, not parasitic insurance practices that drain our community of resources."
House Bill 5250 would alleviate the pain suffered by Detroiters who pay the state's highest automobile insurance rates based solely on their place of residence. It also would prohibit premium prices in the cheapest zone from being more than 45 percent less than those in the highest zone, with certain exceptions.
Scott joined the insurance rally hosted by Sen. Martha Scott (D-Detroit), who has introduced two bills that would create the Make Insurance Affordable and Accessible (MIAA) Task Force and ban territorial rating in setting insurance premiums. They were supported by dozens of legislators and political leaders, including a surprise appearance by Gov. Jennifer Granholm, who briefly joined the crowd in a chant of "MOVE THOSE BILLS."
"We need to stay focused on what's important, and that's making sure that all Michigan residents have access to fair and affordable insurance rates," Scott said. "When setting an automobile insurance rate, a person's driving record is the only fair variable to use – not their place of residence. Michigan consumers need someone to stand up for them and hold insurance companies accountable. I pledge to continue working hard to make sure that insurance companies play by the rules."