LANSING - State Representative Shanelle Jackson (D-Detroit) is winning her battle to make auto insurance more affordable for Detroiters and force the industry to be accountable to consumers. The state House last month passed part of a comprehensive plan to address these goals, including Jackson's legislation to enable the state to give customers refunds when insurance companies overcharge them.
"It's time for insurance companies to answer to the people of Michigan, especially the people of Detroit, who are burdened with some of the highest rates in the state," Jackson said. "Our laws are supposed to protect our residents - not big corporations. This legislative plan will achieve the kind of change we need to help Detroiters keep more money in their pocket during these tough times."
Jackson's legislation addresses the outrageous fact that under current Michigan law, citizens have no legal recourse against abusive insurance companies that charge them excessive rates. Her bill fixes this problem by giving the state Office of Financial and Insurance Regulation (OFIR) the authority to order refunds when customers are overcharged.
The other bills passed by the House last month also empower residents to take action if insurers overcharge them and the state refuses to act, and change the definition of "excessive rates" so that violations are based solely on the costs of providing insurance.
Since 1999, auto insurance rates have increased between 45 percent and 90 percent, according to OFIR.
"Since every driver in Michigan must have auto insurance, it is the Legislature's responsibility to keep insurance rates fair and affordable for all," Jackson said. "Many Detroit families are struggling to make ends meet, and they shouldn't have to deal with the extra burden of adding to the insurance companies' profits. I am committed to fighting for Detroit residents and supporting our communities as we work to create jobs and get our economy back on track."