Michigan Auto Insurance Reform Saves Drivers $357 per Vehicle

Michigan drivers pocketed $357 per vehicle after the state's 2019 auto insurance overhaul. according to a Michigan Department of Insurance and Financial Services report. Milliman, Inc. did the analysis. The bipartisan changes slashed costs and shrunk the uninsured motorist rate gap when compared with other states.

Before the changes, Michigan's uninsured motorist rate sat 5.4% above the national figure. After, it dropped to 3.9% higher. Wayne County drivers saved $539 per vehicle on average.

Gov. Gretchen Whitmer put pen to paper in May 2019, making the overhaul law. The goal was threefold: bring down what drivers pay, keep high coverage available, and let people choose their Personal Injury Protection medical coverage amount.

"In 2019, Democrats and Republicans in the Legislature and I came together to deliver historic, bipartisan auto insurance reform that lowered costs for Michiganders and made insurance coverage more accessible," said Whitmer per SooLeader. "Six years later, we're still seeing the positive impact of that reform and how it's working for Michiganders across the state."

Most of the savings came through PIP cuts, which fell $369 per vehicle on average. The total MCCA assessment dropped $120 per insured vehicle since 2019. Before that, it had climbed year after year.

Researchers examined how the overhaul affected accident victims and healthcare providers getting care. A medical fee schedule came with the changes. Lower payment rates for attendant care services might have caused some trouble at first, with people reporting problems getting these services. But the report shows access issues appear to have eased. Market shifts, court rulings, and the DIFS complaint process all helped fix access issues.

Got questions about your policy? Call DIFS at 833-ASK-DIFS. They're available Monday through Friday, 8 a.m. to 5 p.m. The complete report is available at Michigan.gov/DIFS.