Michigan's 2019 Auto No-Fault Reforms Lower Costs and Strengthen Insurance Market

A recent analysis by the Michigan Department of Insurance and Financial Services, conducted by Milliman, Inc., confirms that Michigan's 2019 bipartisan auto no-fault insurance reforms are effectively reducing costs for drivers and employers.

The reforms are also contributing to a stronger and more stable insurance market within the state. Lower auto insurance costs enhance affordability for Michigan families and businesses, supporting workforce attraction and retention which are critical for economic resilience and competitiveness.

The report suggests that while the reforms are beneficial, Michigan should evaluate the potential advantages of transitioning from its uniquely structured auto insurance system to a model that aligns more closely with other states. Such a transition could further improve affordability and economic competitiveness. The findings offer valuable insight for policymakers and insurance industry stakeholders considering the future direction of Michigan’s auto insurance regulations.