Michigan Auto Insurers to freeze rates

Twelve of about 60 Michigan automobile insurance companies have agreed to freeze auto rates for the next 12 months, following a thinly veiled threat by Gov. Jennifer Granholm to fully investigate any proposed rate increases.

But some of Michigan’s largest auto insurers, including Allstate Insurance Company, Auto Club Group Insurance Co., Geico Indemnity Corp. and Farm Bureau General Insurance Company of Michigan, have not responded to the rate freeze request, according to the state Office of Financial and Insurance Regulation.

Granholm asked for the freeze in early February while the Michigan Legislature works on overhauling auto insurance regulations.

“Auto insurance has simply become unaffordable to many of the state’s citizens and I commend these companies for pledging to freeze their rates while the legislature works on comprehensive auto insurance reform,” said Commissioner Ken Ross of OFIR.

The 12 companies pledging to freeze rates are:

American Bankers Insurance Company of Florida, American International South Insurance Company, American Reliable Insurance, Electric Insurance Company; Essentia Insurance Company, Great Lakes Casualty Insurance Company, IDS Property Casualty Insurance Company, Liberty Mutual Fire Insurance Company, Merchants Mutual Insurance Company;
Meritplan Insurance Company, Pharmacists Mutual Insurance Company and Wolverine Mutual Insurance Company.