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Michigan Supreme Court to hear auto insurance case

Posted On Thu, August 20, 2009

Auto insurance customers may be interested to learn the result of a Michigan Supreme Court case that is expected to come up for review in October.

A recent announcement from Michigan's top insurance official, Ken Ross, said that the Michigan Supreme Court has agreed to hear an appeal involving the use of credit scores to set auto insurance rates.

Michigan officials first tried to bar insurers from using credit scores in such decisions in 2004 but the industry launched an appeal that was successful at the lower court level. According to Ross, the decision by the state supreme court is "good news for Michigan consumers."

Insurance companies have argued that using credit scores to set rates is one way to screen for customers who are more inclined to file larger and more frequent claims. Opponents of the practice argue that the method can be discriminatory against some groups of consumers, especially in light of the ongoing recession.

Customers who are seeking reasonable auto insurance rates have a variety of different options when shopping online, regardless of what their credit score may be.

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