Insurance Rates For Michigan Women As Much As 38 Percent Higher

METRO DETROIT, MI — Esurance and Progressive charge women more for auto insurance than men in Michigan — as much as 38 percent more, according to the Coalition Protecting Auto No-Fault.

The organization, which consists of a group of health care providers and plaintiffs’ attorneys, recently commissioned a study of auto insurance rates. Doug Heller, a California insurance researcher, conducted a survey of rates in Detroit and Brighton, according to a MLive report.

What he found was startling. After gathering 100 online premium insurance quotes, Heller found that Ohio-based Progressive charged women as much as 38 percent more than men for auto insurance. California-based Esurance, meanwhile, was charging as much as 33 percent more.

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And they’re not the only two insurance companies with questionable charging practices. Boston-based Liberty Mutual is tossing a 5 percent surcharge on all Michigan drivers that become widowed, a CBS Detroit report indicated.

Heller said his findings point out a “weak regulatory system” that should have discovered the differences in auto rates on its own. He told CBS Detroit that the state is obligated to watch out for consumers and check for compliance.

"Women already struggle for equal pay, and here we have insurance companies piling on by charging women drivers more for auto insurance. It is a blatant violation of the law and must be stopped," said State Representative Sherry Gay-Dagnogo, D-Detroit, who serves on the House Insurance Committee, in a statement to MLive.

Dyck Van Koevering, general counsel for the Insurance Alliance of Michigan, told CBS Detroit Heller’s findings are nothing more than a distraction. He said the real problem with auto insurance rates — which are among the highest in the nation — comes down to fraud and high medical costs.

Michigan insurers are also mandated in providing unlimited personal injury protection coverage, Van Koevering said. The mandate, he told CBS Detroit, allows healthcare providers to charge auto insurance companies more for medical services than is normally allowed.

Photo by Justin Sullivan / Getty Images News / Getty Images