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Insurance Alliance urges Senate to oppose bill that will raise insurance rates for good drivers

SB 837 punishes good drivers, allows bad drivers to stay behind the wheel

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Source: Kiyoshi Hijiki / Getty

LANSING – The Insurance Alliance of Michigan today called on the Michigan Senate to oppose SB 837, a bill that will raise insurance rates for good drivers while rewarding repeat driving offenders and bad actors on the road. The bill was reported from the Senate Transportation Committee this morning.

“This bill should not have advanced because it will penalize good drivers by raising their auto insurance rates while keeping poor drivers on the road longer, and members of the Senate should oppose the bill,” said Pete Kuhnmuench, executive director of theInsurance Alliance of Michigan. “This bill fundamentally weakens Michigan’s point system that serves as a deterrent to unsafe driving and encourages drivers to obey the rules of the road.”
The bill would allow drivers to take a driver improvement course once every three years, instead of once in their lifetimes. However, a new report from the Michigan Secretary of State clearly demonstrates that the courses fail to improve driver safety. Data recently released by the Secretary of State shows that of the drivers who took a driver improvement course in 2016, only five percent were less likely to have another traffic violation. Even worse, SOS data shows accident rates for those who took a driver safety course actually increased.
The cost of auto insurance is determined by the risk each driver brings to the system. Accurate driving records are used to assess risk. Drivers with worse driving records have higher auto insurance premiums because they bring more risk to the system.

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