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September 24, 2025 • 1 min read

Consumer Federation of America Urges Support for Ban on Penalizing Consumers for Lapses in Auto Insurance

CFA TC

In testimony before the Michigan Senate Committee on Insurance, Financial Services, and Consumer Protection, the Consumer Federation of America urged the Committee to support SB 329, which would ban auto insurance companies from charging consumers fees or higher premiums because of temporary lapses in insurance coverage.

SB 329 would restore important consumer protections that were in place until 2022 and remove costly barriers that currently leave too many Michigan drivers trapped and unable to afford auto insurance. Consumers who struggle to stay insured or even afford coverage because of the cost should not be forced to pay extra just to get back into the auto insurance market.

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