Michigan Reports Finds 2019 Auto Reform Reduced Insurance $357

The Michigan Department of Insurance and Financial Services this month released a report on the impact of the state’s 2019 auto insurance reform and found cost was reduced an average of $357 per vehicle.

“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. Six years later, we’re still seeing the positive impact of that reform and how it’s working for Michiganders across the state,” said Gov. Gretchen Whitmer. “No-fault reform shows that when we work together, we can make a real difference for Michiganders.”

Whitmer in 2019 signed auto insurance reform to give Michigan drives more choices in personal injury protection (PIP) coverage and strengthen consumer protections.

According to the analysis completed by Milliman, Inc. at the direction of the state legislature, savings were driven by PIP savings, which decreased $368 on average. The state’s uninsured motorists was also lowered to 3.9% higher than the national average from 5.4% higher pre-reform.

The study examined how the reform affected access to care for auto accident victims and healthcare providers. Although evaluating the impact with certainty remains difficult, several trends emerged. The reform introduced a medical fee schedule, and the lower payment rates for attendant care services may have initially contributed to reported difficulties in accessing these services. The report states that the data suggests access to care issues may have been alleviated due to a variety of factors, such as market adjustments, judicial decisions, and the DIFS complaint process.

Read the full report at Michigan.gov/DIFS.

Topics Auto Michigan