New Poll Reveals Michigan Voters Disapprove of Auto Insurers’ Rate Setting Practices
Posted on September 13, 2017
As the Michigan Legislature gears up to look at ways to lower the cost of auto insurance in Michigan, a poll released Sept. 13 found that Michigan voters disapprove of a practice commonly referred to as redlining, which is when insurers use factors other than those directly related to driving record to determine auto insurance rates.
Voters are especially angry that many auto insurance companies use a driver’s education level, marital status, credit score and employment status to set auto insurance premiums. Among the key findings in the survey:
- An 81 percent to 15 percent overwhelming majority of voters said auto insurance costs in Michigan are too high.
- 92 percent of voters disapprove of using a person’s educational level to set auto insurance rates.
- 84 percent disapprove of using marital status.
- 78 percent disapprove of using credit scores.
- 77 percent disapprove of using employment status.
- 62 percent disapprove of using where a person lives (ZIP code).
Using a person’s driving record in determining auto insurance rates was the only factor that Michigan voters approved of. According to the survey, 91 percent of Michigan voters approved this practice.
The survey of 600 Michigan voters was conducted Aug. 27 to Sept. 1 on behalf of the MHA. The survey has an error margin of 4+ percent.
Given the increased legislative attention to auto no-fault insurance that is expected in the coming weeks, the MHA will once again be keeping members apprised of any action the state House or Senate may take on the issue this fall. As part of that effort, the first episode of a new podcast series from the MHA called the MiCare Champion Cast features a discussion with Laura Appel, senior vice president and chief innovation officer, as she explains the history of Michigan"s auto no-fault system and past legislative reform efforts.
Members with questions about legislative activities related to auto no-fault should contact Chris Mitchell at the MHA. Members with questions about the EPIC MRA survey or other communications resources should contact Ruthanne Sudderth at the MHA.
Posted in: Issues in Healthcare, Top Issues - Healthcare