Michigan House Votes to Repeal Fees Affecting Car Insurance

Pipe wrench holding walletSome legislators in Michigan say its driver responsibility fee program makes it more difficult for low-income earners to afford auto insurance. In response, the state House of Representatives last week passed a set of bills to repeal some regulations, according to the Associated Press. The package now goes to the state Senate.

The fee program, which began in 2003, brings in more than $100 million every year for the state, according to the AP. The set of bills would cut out some of the fines for minor offenses.

“Extra fees tacked onto bills for drivers with multiple speeding tickets or other offenses such as driving without a license or insurance also would be dropped,” the AP reported. “Fees tacked on to more serious offenses such as drunken driving, reckless driving and manslaughter would remain in place.”

If the bills pass the Senate, the current budget would not be affected because the programs will not end until 2012.

Lawmakers in the state have considered other measures that would affect Michigan auto insurance law. For example, a different set of bills passed the House last year that would eliminate insurers’ ability to use factors such as a person’s occupation, education level or credit history when granting coverage and setting rates. That legislation has been awaiting action in the Senate since December 2009.

Another bill considered by the Michigan House includes prohibiting insurance rate increases on drivers who were not at fault in accidents. Other measures would eliminate the ability of providers to sell their customers’ personal information without their approval.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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