Michigan's 2019 Auto Insurance Reform Delivers Cost Savings and Coverage Options

The Michigan Department of Insurance and Financial Services (DIFS) released an analysis on the impact of the 2019 bipartisan auto insurance reform enacted by the Michigan Legislature and signed by Governor Whitmer. The reform aimed to lower auto insurance costs, preserve comprehensive coverage including unlimited lifetime medical benefits, enhance consumer protections, and expand personal injury protection (PIP) coverage choices for drivers. The analysis highlights an average savings of $357 per vehicle for Michigan drivers, primarily driven by a $369 reduction in PIP costs. The biggest savings were observed in Wayne County, with a $539 average reduction per vehicle. Additionally, Michigan's uninsured motorist rate decreased relative to the national average, narrowing the gap from 5.4% above to 3.9% above national levels. The Michigan Catastrophic Claims Association (MCCA) assessment has also fallen by $120 per insured vehicle since the reform. The report indicates that while the introduction of a medical fee schedule initially posed challenges for accessing attendant care services, ongoing market adjustments, judicial rulings, and DIFS complaint mechanisms have helped mitigate these access issues. This reform illustrates a significant shift in Michigan's auto insurance landscape, balancing cost reductions with maintaining extensive coverage and consumer choice.