LANSING, Mich. — Senate Minority Floor Leader Morris W. Hood, III (D–Detroit) today introduced legislation to ensure fairness in Michigan’s no-fault auto insurance law.

Senate Bill 312 would streamline the factors insurance companies are able to use for the purposes of calculating no-fault insurance rates. Under Sen. Hood’s proposal, insurers would only be allowed to base insurance rates on anticipated repair costs, civil infraction history and insurance claims history.

“If someone wants to legally drive in Michigan, we are all required to have no-fault auto insurance,” Sen. Hood said. “However, current state law creates a wide discrepancy in how much we all pay for this coverage, and in places like Detroit, the rates are astronomical, and in many cases, completely unaffordable.”

According to a study by Pinnacle Actuarial Resources, the average Detroit resident pays $3,400 in annual insurance premiums and metro Detroit residents pay an annual premium average of $1,700 — both of which are in stark contrast to the national average of $900 per year.

“This cost discrepancy just doesn’t make sense,” Sen. Hood said. “Under the current law, insurance companies can base their rates on many subjective criteria that yield unfair outcomes.”

While the current law is applied uniformly across the state, Sen. Hood said some people are benefited and others are greatly harmed.

“This is a big issue,” Sen. Hood said. “Senate Bill 312 would make it simple, and most importantly, it makes it fair — no more smoke and mirrors.”

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