Sep 3, 2009

Scott to announce plans for rally for fair auto insurance rates

Sen. Martha G. Scott, D-Highlander Park, will formally announce plans for her Sept. 30 rally where citizens from across the state will gather on the Capitol lawn to fight the practice of redlining and the high cost of auto insurance and demand insurance reforms that will allow all residents to purchase fair and affordable auto and home insurance at a pair of press conferences next week.

The first press conference is set for 8 a.m. Tuesday, Sept. 8 in front of the Cadillac Building, 3022 W Grand Blvd, Detroit. The second will be at 9 am. Wednesday in Room 405 of the Capitol in Lansing.

“Money spent on insurance – required by law in Michigan – is money struggling families cannot spend on their mortgage, their utilities, and food,” Scott said. “Michigan consumers pay the 12th highest insurance rates in the nation. Detroit consumers pay an average of more than $5,000 a year for auto insurance, the highest rates in the nation. Does that sound fair and affordable to you?”

Scott and other legislators seeking change to Michigan’s insurance laws believe that rates should be set on the value of a person’s home or car, and, for auto insurance, a person’s driving record. Rates should not be set on zip code, education level, job title or credit score – all factors currently used to determine insurance rates.

“I’ve been asking for insurance reform here in Michigan for many years now,” Scott said. “What I want is simple: I want fair and affordable insurance for every citizen of our state, with rates determined by a person’s driving record and the value of their car. That’s not so outrageous, is it? But year after year, I introduce bills that languish and then die in committee without getting a hearing.”

Like the huge crowds that turned out two years ago to plead for reform that fell on the deaf ears of Senate leadership, citizens will again ask for hearings on insurance reform bills now before the Senate, and for votes on those bills. Scott is the sponsor of Senate Bill 166, which would outlaw the practice of setting insurance rates on zip code.

All Michigan citizens are invited to the rally. For information on bus rides from the Detroit area, call Senator Scott’s Detroit office at (313) 372-8567 during business hours after Labor Day. Citizens are also encouraged to carpool to the event or to organize a bus.

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