The Detroit News: Letter: Bills would raise insurance premiums

All Michiganians should have profound reservations about SB 329 and HB 4681, two pieces of legislation looming ominously over our state’s 10 million citizens. The bills would create new demands for insurance companies on how they process and pay claims, making the ability to sue them a lot easier.

By expanding litigation in the resolution of insurance claims and disrupting the equilibrium of our state’s insurance market, these bills could mean higher costs for consumers at a time when they can least afford it.

While lawyers stand to gain, the hardworking homeowners will bear the financial burden.

These higher insurance costs will likely impact low-income residents disproportionately, as they are less able to afford increased premiums. This threat leaves them vulnerable to financial hardship in the event of a car accident, house fire or other emergency.

Those trying to obtain homeownership will have it even worse. Michigan’s housing market has long faced attainability challenges, with persistent economic difficulties compounding the struggle for many families.

Rather than alleviating these woes, SB 329 and HB 4681 would exacerbate them.

Business and political leaders in Michigan should work together to enhance the affordability and accessibility of housing in our state, but these bills would take us in the opposite direction. Lawmakers must consider the implications of these bills on Michigan’s homeowners and oppose this legislation.

 

Dawn Crandall

Executive Vice President for Government Relations

Home Builders Association of Michigan

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