State Senators voted down a bill to streamline the price setting of auto insurance premiums. The bill, which failed by a margin of 21-14 would have banned insurance companies from determining rates based on risky regions, such as urban areas with high vehicle theft.
State Senator Roger Kahn, a Saginaw Township Republican, voted against the bill, saying people living in the Saginaw County area would be forced to pay between 17-24 percent more in their premiums.
“Insurance reforms are ok,” Kahn said. “However it's unfair to force 3 out of 4 Michigan drivers and in particular the people I represent to subsidize the premiums of drivers in high risk areas,” he said.
State Senator John Gleason, Democrat from Flushing, voted against it as well but said reform is still needed.
Meanwhile MidMichigan residents said they want something done to level the playing field. “Right now insurance is outrageous!” said Saginaw Pastor Kennith Simon.
"Some of my members live on the west side, some on the east side and they tell me "Pastor Simon, what I pay over on the east side is much more than what some members pay on the west side."
Sen. Kahn said there are some other bills for consideration that may handle auto insurance reform differently. It is not quite sure when those bills will be released from committee and to the full Senate for a vote.
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