LANSING, Mich. (June 3, 2026) — This week, Sen. Jeremy Moss (D-Bloomfield) introduced a critical piece of legislation as part of Michigan Senate Democrats’ A Michigan You Can Afford agenda, working to protect Michigan consumers against predatory business tactics. The Senate Committee on Economic and Community Development heard testimony today on Sen. Moss’ legislation, Senate Bill 1013, which would ban auto and home insurance companies from using price optimization to set their rates.
“Price optimization is a shady practice that allows insurance companies to exploit your shopping patterns to determine the highest rates you are willing to pay. If they think you’ll renew your policy, they may hide rewards, discounts, perks and special offers from you — or worse, simply jack up your rates,” said Sen. Moss. “Twenty other states outlaw price optimization, and Michigan’s insurance department prohibits this practice. We must put this prohibition permanently into our state law to protect Michigan consumers from billing scams amid skyrocketing costs.”
Price optimization occurs when an insurance company sets rates based on what it believes a consumer will tolerate paying, oftentimes unfairly penalizing loyal customers with higher rates or offering discounts only to those who threaten to leave their policy and find a new insurance provider.
Senate Bill 1013 remains in the Senate Committee on Economic and Community Development for further consideration. Learn more about Senate Democrats’ A Michigan You Can Afford agenda here.
###