Michigan’s Governor Whitmer issued an executive directive asking for a report to be issued on the use of “non-driving” related factors in the pricing of auto insurance premiums in Michigan.

In a news release Governor Whitmer stated these “non-driving” related factors include education, home ownership, occupation, credit scoring factors, and in some cases gender and marital status.

In that news release Governor Whitmer stated:

Auto insurance rates must be fair and reasonable…We must take a hard look at how auto insurers are setting rates to ensure these practices are lawful and to determine how we can achieve complete and lasting reform for Michiganders.

Why would any elected official believe that they can dictate to a private company what factors they use to determine the price of their product or service as long as these factors are not racist or bigoted?

Is this another sign of arrogance on the part of elected officials?

As long as governments do not grant monopolies to companies they should let the free market dictate the prices companies charge for their product or services.  I understand why utility companies’ prices are regulated to some extent by the state because they are granted a monopoly by the state.

Another example would be garbage collection, the city of Battle Creek dictates that everyone who lives in the city must pay for garbage collection.  In doing so they force you to buy the garbage collection service from one company, that being said they should then regulate the cost of garbage collection because the free market is unable to do so.

More news on auto insurance in Michigan, Senate Majority Leader Mike Shirkey, R-Clarklake, recently stated that a plan to reduce Michigan auto insurance premiums will be introduced in the Legislature within days.  Michigan does have the highest auto insurance rates in the country partially due to the Michigan Catastrophic Claims Association (MCCA) charge.

The MCCA issued a statement earlier this year that simply read:

The Michigan Catastrophic Claims Association (the MCCA) assessment to insurance companies will be $220.00 per insured vehicle effective July 1, 2019 to June 30, 2020.

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