Pennsylvania Legislature and Insurance Companies Should Take Notice of Michigan Auto Industry Proposal Requiring More Transparency and Accountability and Lower Premiums
On November 30, 2009, representatives from the government of Michigan announced an automobile insurance reform proposals that would shine a spotlight on the auto industry’s unfair pricing practices and make insurance more affordable by giving the state’s insurance commission final say over rate increases, as well as the power to order refunds for consumers who were charged excessive rates. Michigan drivers pay the second highest auto insurance rates in the United States not so far behind drivers in Pennsylvania. Under the Michigan plan, all low income drivers would be required to purchase a bare bones $600 policy whereupon the government would force insurance companies to reduce their auto insurance rates. Not so surprisingly, auto industry executives claimed that such a proposal would create more law suits and cost the insurance industry jobs.
Unfortunately as we see from the hit and run car accident epidemic in Pennsylvania, many people are unable to afford insurance, causing accidents and leaving the scene fearful of legal ramifications. The excessively high rates now enforced in Pennsylvania and many states results in more motorists driving without coverage. The Michigan proposal would allow the insured to buy less medical coverage.
This Philadelphia car accident lawyer salutes the efforts of the Michigan legislature and recommends that the legislature of Pennsylvania view this proposal closely and give thought to the same in order to help improve the number of uninsured motorists driving on our roadways and help make an impact on the hit and run epidemic that is affecting our citizens.
