New bill could lower auto insurance premiums in parts of the state

Jim Grey

A new bill could change the way auto insurance is calculated across the state.

Supporters of the bill hope to make the cost of auto insurance in the state, which has some of the highest rates in the country, a little more fair.

Democratic State Senator Morris Hood is the bill’s primary sponsor. He says insurance rates would be calculated based on multiple factors.


“We’re saying your insurance premium will be factored on three: you’re driving record, your claims history, and the cost to replace the vehicle. Just simply those three. We think that would make it fair across the board.”


Particularly in Detroit where annual premiums can get as high as five thousand dollars in some areas the change could help bring down costs.


State Senator Hood said making premiums equitable is important.


“If we’re going to as a state demand that you have to have insurance by law to drive a vehicle then how can you demand that if the insurance rates aren’t affordable?”

Senator Hood said he knows getting the bill passed will be an uphill climb but he’s hopeful about the bill’s future.