A Few Small Market Insurers Agree to Michigan Auto Rate Freeze

Michigan Gov. Jennifer Granholm’s call for auto insurance companies to freeze their rates has won over eight companies thus far, although they are insurers with small share of the market in the state.

In a Feb. 3 order, Granholm asked each automobile insurance company doing business in Michigan to pledge to freeze automobile insurance rates in Michigan for a 12-month period effective immediately, but no later than March 1, 2009, while the Michigan Legislature works to enact automobile insurance reform.

As of Feb.17, according to the Michigan Office of Financial and Insurance Regulation, the following insurance companies had pledged to freeze rates for a 12-month period: American International South Insurance Co., American reliable Insurance, Electric Insurance Co., IDS Property Casualty Insurance Co., Merchants Mutual Insurance Co., Meritplan Insurance Co., Pharmacists Mutual Insurance Co. and Wolverine Mutual Insurance Co.

State Farm, AAA, Progressive, Citizens, Farm Bureau and Allstate — which write 50 percent of the market– are not on the list of insurers agreeing to freeze rates.