New bill would lower Detroit auto insurance, but could raise it in rest of state

LANSING, MI — A Detroit senator has introduced a bill to limit the factors insurance companies can use to set their rates, something he sees as fair but an insurance industry group says would raise costs for people living in rural Michigan.

Senate Bill 312 would limit the criteria auto insurers could use in setting their rates to three factors: anticipated repair costs, civil infraction history and insurance claims history. Currently insurers use a lot more than that, including how many years somebody has been driving, where you live, insurance-based credit scoring and miles driven.

But Sen. Morris Hood III, D-Detroit, said his bill gets at an issue of fairness.

“What we’re looking at is just making insurance rates fair to everyone,” said Hood.

He said he’s seen cases where somebody who has a clean driving record and lives in Detroit is paying more than somebody with driving infractions and claims living in

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