Amit : What are the new changes in Michigan auto insurance. Would it make any difference in online auto insurance quotes for this state when one tries to get low auto insurance rates?

Response : Just recently as on the 17th December 2009, The House passed a portion of a bill package focused which according to the insurance industry will have disastrous consequences on auto insurance costs and the stability of the insurance market, including a prohibition on credit-based insurance scoring.

Now let me explain this to you in more details. As per the bill, the insurance companies will not be permitted to have a credit based rating. This would be an advantage for the customer since now they can go for online auto insurance quotes without anything to worry about and get multiple quotes since their credit score is not at all affected. Now to be very honest it is a myth that your credit score is affected and please see my post on credit rating and online auto insurance.

The insurance companies are not happy with this since now they will not be able to use the credit based rating system. As per the insurance companies the credit based rating helped them in giving low auto insurance to the clients. Credit-based insurance scoring has been shown to benefit consumers because it allows them to secure lower insurance costs. In Michigan, credit-based insurance scoring is used only to provide discounts for insurance customers. Credit-based insurance scores are not used in Michigan to apply a surcharge or to determine whether a person can be insured by the company. And despite the economy, credit scores are staying stable.

Auto and homeowner insurers doing business in Michigan have formed a coalition, Protecting Michigan’s Future, to defeat this misguided, anti-consumer legislation; promote comprehensive, cost-saving reform solutions; provide information to policymakers for making sound public policy decisions; and set the record straight on insurance practices.

My own recommondation to you is to go for online auto insurance quotes, you will get low car insurance rates for sure and find what suits you best with the online quotes without having to worry about any privacy information since this is free and the insurance companies should abide to the privacy acts.

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