LANSING, Mich. (July 2, 2026) — Today, Senate Democrats advanced a critical piece of legislation within their A Michigan You Can Afford agenda by passing a bill to protect Michigan consumers against exploitive insurance billing tactics. Sponsored by Sen. Jeremy Moss (D-Bloomfield), Senate Bill 1013 would ban insurance companies from using the practice of price optimization to set their rates.
“Insurers use price optimization to unfairly raise the rates of their most loyal customers just because they know they can — all the while Michigan drivers are already paying some of the highest car insurance premiums in the nation,” said Sen. Moss. “I’m grateful to advance the ban of this exploitive practice out of the Senate today and move a step closer to aligning Michigan with the twenty other states that outlaw this predatory billing scam.”
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 now heads to the House of Representatives for further consideration. Learn more about Senate Democrats’ A Michigan You Can Afford agenda here.
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