Detroit Bankruptcy Lawyers: Mich. Supreme Court Says Insurers Can Use Credit Scores For Setting Rates

In a recent 4-3 decision, the Michigan Supreme Court has ruled that insurance companies can use credit scores to set insurance rates. The insurance companies have long insisted that there is a link between bad credit scores and bad drivers. That is to say, if you have a low credit score, you must be a bad driver. Justices Maura Corrigan wrote the majority opinion and were joined by Justices Stephen Markman, Robert Young, and Elizabeth Weaver. Justices Marilyn Kelly, Diane Hathaway, and Michael Cavanagh would have upheld the actions of the insurance regulators in banning the use of credit scores in issuing discounts. This means that many people in Michigan may see an increase in their auto or home-owner insurance rates by simply having a low credit score, regardless of how long you have been driving with a clean record. The insurance industry will be giving discounted premiums to those who have high credit scores, which means in order to pay for the discounted premiums, those with low credit scores may receive an increase in their premiums. Also, keep in mind that having auto insurance is a requirement to drive a car in Michigan. So those with low credit scores will not be able to simply do without auto insurance. So if your credit score is low because you live in Michigan and have been out of work and cannot meet your monthly bills, life may about to get harder on you. This is another increase in cost of living in Michigan. So it is more important now to get your finances in order and do something about increasing your credit score. So call your Detroit Bankruptcy Lawyers today at (586) 439-4297 and see how Chapter 7 or Chapter 13 can help you get a fresh financial start in life and rebuild your credit score. The consultation is free and the advice is valuable.

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