MICHIGAN - Michigan’s historic bipartisan auto insurance reform law that was signed by Governor Gretchen Whitmer in 2019 has lowered costs for Michigan drivers, while maintaining the highest coverage limits in the country and strengthening consumer protections. For policies issued or renewed after July 1, 2020, drivers can choose the amount of Personal Injury Protection (PIP) medical coverage that’s right for them, and the law mandates statewide average savings for PIP medical premiums for 8 years. In addition, there is an amnesty period through early 2022, for people who have gone without auto insurance coverage to apply for a policy without paying a penalty or increased premium because they did not previously have coverage.

During the State of the State Address, Krysten Jones, a resident of Detroit shared that under Michigan’s old law, it cost more than $550 per month to cover her two vehicles. Jones was unable to afford the coverage required to legally drive her vehicle and to protect her family in the event of an accident, despite having a clean driving record. When the new auto insurance law went into effect, she was able to lower her premium to $150 per month to cover both cars. “Before the bipartisan auto insurance law that Gov. Whitmer signed, I decided to take my chances and go without coverage. I was willing to take that risk, but at midnight when the Governor's new law went into effect, I went online and signed up for coverage. Now my rates have dropped by nearly $400 a month,” said Jones.

Not only is Krysten’s family saving nearly $5,000 a year, Krysten does not face the risk of being pulled over without proof of insurance and her family is now protected in the event of an accident.

Michigan’s auto insurance industry is regulated by the Michigan Department of Insurance and Financial Services (DIFS). DIFS also provides consumers with insurance shopping tips, financial literacy education, outreach, and consumer protections including the ability to file complaints against auto insurers and agents.

Anita Fox, the Director of DIFS says, “We are committed to ensuring consumers like Krysten are empowered to choose the coverage that meets their needs and budget under Michigan’s new auto insurance law. The average statewide savings under the new law have exceeded statutory requirements, and DIFS is available to support consumers who have questions, concerns or complaints about their auto insurance.”