FLINT (WJRT) (04/23/19) — Michigan Congresswoman Rashida Tlaib and other state lawmakers have introduced a bill aimed at lowering auto insurance premiums for residents.
The bill, specifically calls for taking FICO, or credit scores out of the equation when it comes to determining your auto insurance rate –something that’s easier said than done.
“There’s a correlation between lower credit ratings and higher claim frequency, and this is something that companies have been able to establish statistically, year after year after year,” said Darin Mohrman with Al Bordeau Insurance Agency.
Mohrman says credit ratings are just one of many different factors that play into how much consumers pay for car insurance; and if it’s taken away?
“They’re going to look for other statistical correlations that they can lean heavier on to make up for that inability to use credit rating.”
Mohrman says, at the end of the day, insurance companies are all about looking for ways to predict future losses.
“This is why I don’t think necessarily this is the right answer to solve insurance premiums in Michigan.”
He says what would be more realistic is no fault reform and giving people options for medical payments under their auto policy.
Congresswoman Tlaib plans to hold a auto insurance accountability Town Hall meeting tomorrow night. She will be joined by several other lawmakers who have pushed for auto insurance reform in the state.
It will be held at Focus Hope in Detroit from 6-8 p.m.