Michigan Auto Insurance Reform Shows Measurable Market Impact in 2025

Michigan's 2019 auto insurance reform continues to reshape the state's insurance market, producing measurable impacts on costs, coverage options, and consumer experience. The Michigan Department of Insurance and Financial Services (DIFS) commissioned a comprehensive analysis by Milliman, Inc., which was released in December 2025 and provides a detailed assessment of the law's effects six years post-enactment. The reform aimed to reduce insurance costs while maintaining Michigan's unique position as the only state offering unlimited lifetime medical benefits under Personal Injury Protection (PIP). The Milliman report highlights that despite efforts to lower premiums, Michigan drivers retain extensive coverage choices, reflecting a balance between affordability and protection. The economic analysis identifies trends supporting a decline in premiums alongside expanded consumer choice, aligning with the law's bipartisan objectives. Governor Gretchen Whitmer and DIFS Director Anita Fox affirm the reform's role in enhancing coverage access and sustaining valuable benefits for residents. A significant aspect of the reform included instituting a medical fee schedule, particularly affecting attendant care service reimbursements. Initial data indicates challenges in service access possibly due to reduced fees; however, over time, these access issues appear to have lessened. Factors contributing to this improvement may involve judicial rulings, market adjustments, and enhanced regulatory complaint processes managed by DIFS. The report acknowledges limitations in definitively measuring care access outcomes but stresses observed positive trends for auto accident victims and healthcare providers within the state system. DIFS continues to support policyholders through a dedicated hotline and online complaint portal, reinforcing its commitment to consumer protection and assistance. Overall, the report and associated state commentary underscore Michigan's ongoing commitment to maintaining an auto insurance market that balances cost containment with comprehensive coverage options, while also promoting transparency and consumer support. DIFS emphasizes its broader mission to safeguard Michigan residents' financial security and foster sustainable growth within the insurance and financial services industries.