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Commissioner: Green Light for "Pay as You Drive" Insurance
FOR IMMEDIATE RELEASE
March 28, 2011
Contact: Jason Moon 517-335-1700
LANSING – The Office of Financial and Insurance Regulation (OFIR) has issued a bulletin to Michigan insurers reminding them that they can offer “pay as you drive” or mileage-based automobile insurance rates. The state’s insurance code allows insurers to use mileage as the primary or sole factor in rating automobile policies.
“Michigan law provides insurers the flexibility to base auto insurance on how many miles are driven,” OFIR Commissioner Ken Ross said. “Michigan drivers should shop around for the coverage that best fits their needs.”
Insurance companies may write auto policies with premiums based solely or primarily on miles driven weekly, annually, or both. Companies are not required to offer mileage-based rates.
A copy of OFIR’s bulletin can be found at: http://www.michigan.gov/documents/dleg/Bulletin_2011_10_INS_348557_7.pdf