The Michigan Department of Insurance and Financial Servic
es this month released a report on the impact of the state’s 2019 auto in
surance reform and found cost was reduced an average of $357 per vehicle.
“In 2019, Democrats and Republicans in the Legislature a
nd I came together to deliver historic, bipartisan auto insurance reform that lowered costs for Michiganders and m
ade insurance coverage more accessible. Six years later, we’re still seeing the positive impact of that reform and ho
w it’s working for Michiganders across the state,” said Gov. Gretchen Whitmer. “No-fault reform shows that when we w
ork together, we can make a real difference for Michiganders.”
Whitmer in 2019 signed auto insurance reform to give Michigan driv
es more choices in personal injury protection (PIP) coverage and strengthen consumer protections.
According to the analysis completed by Milliman, Inc. at the direction of the state legislature, savings were driven
by PIP savings, which
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decreased $368 on average. The state’s uninsured motoris
ts was also lowered to 3.9% higher than the national average from 5.4% higher pre-reform.
The study examined how the reform affected access to care for au
to accident victims and healthcare providers. Although evaluating the i
mpact with certainty remains difficult, several trends emerged. The r
eform introduced a medical fee schedule, and the lower payment rates for a
ttendant care services may have initially contributed to reported
ifficulties in accessing t
gests access to care issues may have been alleviated due to a variety of factors, such as market adjustment
s, judicial decisions, and the DIFS complaint process.