Legislative Update with NAIFA-MN member Rick Rice (March 2016 )

Wednesday, Commerce Commissioner Mike Rothman announced a sweeping proposal to completely revise our state’s auto insurance rating system. The Minnesota Fair Auto Insurance Act was heard in the Senate Commerce Committee where Commission Rothman made the case for this far-reaching legislation.
According to the Commissioner, auto insurance rating has gone beyond common sense. Insurers can crunch all types of individual data upon which they base rates, most of which has nothing to do with how a person drives an automobile. Rothman believes that auto insurance rates are based more on who you are than how you drive. Auto insurance rates are rising steadily. As evidence, the price index for auto insurance rose 5.1% while the broad CPI rose only 1 percent.