Michigan's 2019 Auto Insurance Reform Shows Positive Market Impact

The Michigan Department of Insurance and Financial Services (DIFS) released a comprehensive report analyzing the effects of the 2019 bipartisan auto insurance reform signed into law by Governor Whitmer. The reform aimed to lower auto insurance costs for Michigan drivers while maintaining the state's historically high coverage options and enhancing consumer protections. Among its key goals was to offer more personalized coverage choices, particularly regarding Personal Injury Protection (PIP) medical coverage. According to the report, the reform successfully reduced the number of uninsured drivers in Michigan and increased accessibility to insurance coverage. It preserved Michigan's unlimited lifetime medical benefits, distinguishing the state nationally. Importantly, the report indicates that consumers now have more flexibility to tailor insurance coverage to their financial needs and preferences. An economic analysis within the report highlighted the reform's impact on access to care for auto accident victims and healthcare providers. The implementation of a medical fee schedule led to lower payment rates for attendant care services, initially contributing to challenges in accessing these services. However, subsequent judicial decisions, market adaptations, and the complaint resolution process facilitated by DIFS appear to have mitigated many of these issues over time. DIFS continues to provide consumer support, including assistance with insurance policy inquiries and complaints against agents or companies. The department underscores its commitment to ensuring safe and secure insurance and financial services that support economic growth and consumer protection in Michigan. Resources for consumers and industry professionals are available on Michigan.gov/DIFS. Overall, the 2019 auto insurance reform has demonstrated a positive market impact by balancing cost reduction with comprehensive coverage standards and strengthening consumer choice and protection in Michigan's auto insurance industry.