Will Michigan Drivers Pay Lower Premiums Under New Insurance Law?

Sourced from https://www.thesimpledollar.com/insurance/auto/michigan-new-auto-insurance-law-explained

Michigan is known to have the highest auto insurance rates in the nation, but that may soon change. Michigan lawmakers recently changed the state’s no-fault law in hopes of bringing down the cost of auto insurance for drivers, which will take effect on July 1, 2020. Prior to this, there had been no significant changes to Michigan’s auto insurance law since 1973.

By 2018, Michigan auto insurance was ranked fourth in the U.S. for the most expensive premiums and 20% of drivers were driving uninsured, according to Dan Schrock, Jr., senior vice president of sales and field/life operations at the AAA-The Auto Club Group.

Schrock says the high cost was due to Michigan’s unique law of having unlimited lifetime medical benefits for those injured in an auto accident. Michigan is the only state in the nation to require drivers to purchase unlimited medical coverage with their auto insurance policies.

Erin McDonough, executive director of the Insurance Alliance of Mic… Read More

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