Auto Insurance Premiums: Whitmer's Impact On Michigan Rates

Michigan Governor Gretchen Whitmer has been working to lower auto insurance premiums for drivers in her state. In 2020, Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced that Michigan's auto insurer rate filings would provide savings to Michigan drivers that would equal or exceed the law's required reductions of average statewide per-vehicle premiums. In 2021, Whitmer announced that a new auto insurance reform law would save Michiganders between 25% and 62% on the Personal Injury Protection (PIP) medical portion of their car insurance policy. However, in 2024, the Michigan Senate voted to revise the auto insurance law, which Whitmer opposed, saying it would increase insurance costs for Michigan drivers.

Michigan drivers saw an 18% reduction in auto insurance rates in 2020

In 2020, Michigan drivers saw an 18% reduction in auto insurance rates, the greatest reduction in the nation, with the nationwide average reduction being just 4%. This was the result of a new auto insurance reform law signed by Governor Gretchen Whitmer, which gave drivers more choices in their auto insurance policies. The reform allowed drivers to choose lower levels of personal injury protection, providing an alternative to the previous mandatory lifetime care guarantee. The law also required insurers to reduce Personal Injury Protection (PIP) medical coverage rates by 25 to 62%, depending on the coverage options chosen by the driver.

The reduction in auto insurance rates was welcomed by Michigan drivers, who had long called for relief from high auto insurance rates. The reform was the result of bipartisan legislation, with Governor Whitmer praising the collaboration across party lines. The lower rates provided increased consumer protections and more choices for drivers, allowing them to select the coverage level that best met their needs and budget.

The reform also encouraged market competition, with 36 new companies or affiliates entering the auto insurance market in Michigan. This increased competition further contributed to the reduction in rates, making auto insurance more affordable for Michigan drivers. The state also promoted consumer protections, assisted families with access to care concerns, and reviewed rates filed by auto insurers to ensure compliance with the new law.

Governor Whitmer highlighted that even drivers who chose to maintain unlimited coverage, which provides the nation's most generous benefits, were still saving money. The average, statewide PIP medical reductions exceeded the statutory requirements, and individual consumers' savings may vary based on factors such as driving record, miles driven, and coverages selected. The reform also included an amnesty period for uninsured drivers, allowing them to purchase insurance without paying a penalty or increased premium if they applied before January 1, 2022.

Overall, the auto insurance reform law implemented by Governor Whitmer resulted in significant savings for Michigan drivers, providing much-needed relief from high auto insurance rates and increasing consumer choices and protections. The reform also encouraged market competition and ensured access to safe and secure insurance services for Michigan residents.

Gov. Whitmer's auto insurance reform law saves drivers between 25% and 62% on Personal Injury Protection (PIP) medical coverage

Governor Gretchen Whitmer announced that Michigan drivers would see lower costs and more savings on their auto insurance policies. Under the new auto insurance reform, drivers are expected to save between 25% and 62% on the Personal Injury Protection (PIP) medical portion of their policies, depending on their chosen coverage options.

The new law gives drivers the option to choose lower levels of personal injury protection, providing an alternative to the previously mandatory lifetime care guarantee. This means that drivers can now select the coverage level that best suits their needs and budget. Even those who opt to maintain unlimited coverage, which offers the most generous benefits in the nation, will still benefit from reduced rates.

The reform is expected to result in an estimated $1 billion in auto insurance savings for Michiganders, with a 27% reduction in rates across the market. This has made auto insurance in Michigan more affordable, as the state previously had the highest rates in the country. The reform has also encouraged market competition, with 36 new companies or affiliates entering the auto insurance market in Michigan.

Governor Whitmer's administration has been committed to working across party lines to pass this historic, bipartisan auto insurance reform. The legislation aims to provide relief to Michigan drivers, who have long faced high auto insurance rates. The reform has successfully lowered rates, increased consumer protections, and offered more choices to drivers.

The Michigan Department of Insurance and Financial Services (DIFS) has been instrumental in implementing the reform. They reviewed and rejected Personal Injury Protection (PIP) filings that used prohibited rating factors, ensuring compliance with the new law. DIFS also operates a dedicated no-fault hotline, providing assistance to drivers with questions or concerns about their auto insurance.

The reform law also gives drivers more coverage options, including lower levels of personal injury protection

Governor Gretchen Whitmer announced that Michigan drivers would see lower costs and more savings for their auto insurance policies. This was due to the auto insurance reform law, which was signed into law by the governor. The reform law gives drivers more coverage options, including lower levels of personal injury protection.

Previously, personal injury protection (PIP) medical coverage was mandatory and typically represented almost half of an individual driver's premium. Under the new law, Michigan drivers can now choose from a range of PIP medical coverage levels, including lower levels of protection. This gives drivers more flexibility and allows them to select the coverage level that best meets their needs and budget.

The reform law also includes other consumer protections, such as an amnesty period for drivers who have let their insurance lapse, which allows them to purchase insurance without paying a penalty or increased premium. Additionally, the new law has resulted in increased market competition, with 36 new companies or affiliates entering the auto insurance market in Michigan.

According to Governor Whitmer, the auto insurance reform law has resulted in significant savings for Michigan drivers. In 2020, Michigan drivers saw a reduction in rates of 18%, while the nationwide average reduction was only 4%. The governor also highlighted that even those who choose to keep unlimited coverage are still saving money.

The lower premiums and increased competition in the market have led to an overall reduction in auto insurance rates in Michigan. This has helped to address the high auto insurance rates that had been a concern for Michigan drivers for many years. The reform law gives drivers more choices and flexibility while also providing enhanced consumer protections.

Michigan drivers will receive auto insurance refunds totalling $2.2 billion

The refunds are expected to be issued to drivers no later than May 9, 2022, with the money scheduled to be transferred to insurers by March 9. From there, the refunds will be issued through mail or ACH deposit. This development follows a request by Governor Gretchen Whitmer, who called on the MCCA to send checks back to drivers after the group registered a projected $5 billion surplus in November.

Governor Whitmer expressed satisfaction with the development, stating that Michigan used to have the highest auto insurance rates in the nation but that the state now prioritises its residents by significantly lowering insurance costs. She also highlighted that the reform provides access to the most generous benefits in the nation.

The reform also allows drivers to choose lower levels of personal injury protection, providing an alternative to the previous mandatory lifetime care guarantee. Additionally, Michigan drivers saw the greatest reduction in rates in 2020, with an 18% decline compared to the 4% nationwide average reduction.

The bipartisan reform law was passed to address Michigan's high auto insurance premium costs

In 2021, Governor Gretchen Whitmer announced that a new auto insurance reform law would save Michigan drivers between 25% and 62% on the Personal Injury Protection (PIP) medical portion of their car insurance policies. The bipartisan reform law was passed to address Michigan's high auto insurance premium costs, which had been a point of contention for decades. The new law allows drivers to choose from a range of coverage levels, including lower levels of personal injury protection, and unlimited coverage, which is still an option despite the lower premiums.

The reform has resulted in savings for drivers, with Michigan no longer the most expensive state for auto insurance. In 2020, Michigan drivers saw an 18% reduction in rates, while the nationwide average reduction was just 4%. The following year, aggregated data from rate filings approved under the new law showed that the average statewide PIP medical reductions exceeded the statutory requirements, and that those savings further increased in 2021, even when adjusted for increased mandatory Bodily Injury (BI) coverage.

The bipartisan law has also led to increased market competition, with 36 new companies or affiliates entering the auto insurance market in Michigan. In addition, more than 66,000 previously uninsured Michiganders have purchased auto insurance coverage under the law's amnesty period. The reform has also resulted in increased consumer protections, with an uninsured driver amnesty period helping drivers who had let their insurance lapse to purchase new insurance without penalty.

Despite the success of the reform in reducing insurance costs, there have been some concerns. In 2024, the Michigan Senate voted to revise the auto insurance law, undoing a key reform from the 2019 overhaul that cut medical provider reimbursement rates. Governor Whitmer opposed this revision, warning that it would increase insurance costs for Michigan drivers.

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