Michigan Gov. Jennifer Granholm's misguided plan to lower auto rates in Detroit by curbing the used of insurance scoring will raise rates on many Michigan residents, including many in Detroit, and is doomed to fail. That's the conclusion of Robert P. Hartwig, senior vice president and chief economist for the Insurance Information Institute.

Rather than combating surging urban auto insurance prices by cracking down on fraud and abuse, a tactic Hartwig notes has been successful in other states such as New York and New Jersey, the Michigan governor has proposed eliminating the use of insurance scoring and eliminating discounts for good credit scores.

Robert P. Hartwig: Plan to curb insurance scoring will instead drive up state's rates (Insurance Information Institute)

April 27, 2005