New Auto Insurance Rate Filings Approved

Liz Gullett

Jun 12, 2020

With rate filings representing more than 99.5% of Michigan’s personal auto insurance market now approved, Governor Gretchen Whitmer and the Department of Insurance and Financial Services announced today that the average statewide Personal Injury Protection (PIP) medical savings under the state’s new auto insurance law will exceed the law’s requirements. The new law mandates statewide average savings for 8 years. Auto insurance premiums are individual to each consumer and may vary on driving record, miles driven, coverages selected, and other allowable factors. The aggregated data shows that the average statewide PIP medical reductions exceed the statutory requirements, which use the average statewide rates on May 1, 2019 as the baseline.

Under the new auto insurance law, Michigan drivers will now have a choice in the amount of PIP medical coverage they purchase on policies issued or renewed after July 1, 2020. PIP medical coverage pays allowable expenses for medical care, recovery, rehabilitation, and some funeral expenses, and typically represents almost half of an individual driver’s premium. Michigan is the only state where unlimited PIP medical continues to be an option.

The new law also increased the mandatory level of Bodily Injury coverage, which is the limit the insurance company will pay if a driver is found legally responsible for damages in a crash. Even when adjusted for statutory increases, the filings continue to show savings.

For more information, please visit Michigan.gov/autoinsurance.

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