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Opinion | Michigan’s auto no-fault reforms are working and saving drivers money
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Michigan’s auto no-fault reforms are delivering real results for drivers and families who are watching every dollar.
A newly released report from the Michigan Department of Insurance and Financial Services (DIFS) validates that the important reforms passed into law and signed by Gov. Whitmer continue to put money back into the pockets of Michigan drivers.
Authorized and requested by the Michigan Legislature, this independent report found that Michigan’s landmark bipartisan auto reforms passed in 2019 have been effective in reining in rising costs, reducing rampant overcharging and offering consumers more choices.
These savings on auto insurance are a bright spot in the middle of a national affordability crisis, coming at a critical time for Michigan families and small businesses as they face rising costs for everything from groceries to health care.
We recognize that Michigan drivers might not feel like they are saving money on their auto insurance bills, but the facts are clear: Michigan’s auto no-fault reforms have saved motorists in our state an average of $357 per vehicle per year. In addition, drivers saved $369 per insured vehicle per year on Personal Injury Protection (PIP) coverage, which pays for medical expenses and other damages in some cases, such as lost wages, regardless of fault.
Prior to reform, Michiganders were forced to buy the highest PIP levels in the nation, regardless of whether they needed them or could afford them. Medical costs related to auto accidents had no limits and were wildly out of control.
To continue this important effort to help families save money on their auto insurance, legislators should build on Michigan’s progress and further strengthen these reforms. This would help Michigan drivers see more visible savings on their bills.
An important next step is cracking down on fraud. Michigan’s Senate should pass House Bills 4713–4719, which will toughen punishments for those who commit fraud and protect Michigan consumers who are victims of fraud. Bad actors should be punished, and these important bills will give regulators strong tools to fight fraud, which costs all Michigan motorists an estimated $700 a year — even those who had no direct involvement in a scam.
Michigan legislators can also help families save even more money by reining in excessive requirements for Bodily Injury Liability (BI), which is included in a driver’s auto insurance plan and pays for medical and other costs for people injured in an accident when that driver is at fault.
In Michigan, minimum BI limits are $50,000 per person or $100,000 per accident, but complicated paperwork requirements at every renewal have drivers repeatedly defaulting to $250,000 and $500,000, respectively, regardless of whether that coverage fits their needs and budget.
The data also shows clearly that access to quality care has been preserved, despite the claims by those who want to turn back the clock to the dark days when Michigan was the highest state in the nation for auto insurance.
The members of the Insurance Alliance of Michigan are committed to making sure everyone receives the care they need if they are catastrophically injured in an auto accident. If you have a question or concern about the care you are receiving, please reach out to your insurance company for help or file a complaint on the DIFS hotline at 833-ASK-DIFS or 833-275-3437.
By building on Michigan’s auto no-fault reforms and providing more protections and greater choices for consumers, we can deliver even more savings to families and small businesses.
Our no-fault reforms are clearly helping Michigan families save money in tough times. We must go forward, not slip into reverse.
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