Gov. Whitmer Announces Savings for Drivers Under Auto Insurance Reform Law

Governor Gretchen Whitmer announced Tuesday that Michigan drivers should expect lower costs and more savings for their auto insurance policies over the previous year.

According to officials, under the new auto insurance reform signed into law by Governor Whitmer, drivers should see more savings on the PIP medical portion of their policies on average between 25 to 62%, depending on which coverage options they choose this year.

Governor Whitmer also reminds drivers who have let their auto insurance lapse that time is running short to take advantage of purchasing insurance penalty-free before the Jan.1 deadline.

“Michigan drivers called for relief from high auto insurance rates for decades, and I am pleased that this bipartisan legislation has resulted in savings, increased consumer protections, and more consumer choices than ever before,” said Governor Whitmer. Drivers are able to choose the coverage level that best meets their families’ needs and budget, and even those who’d like to keep unlimited coverage, which provides the nation’s most generous benefits, are still saving money.”

Officials say lower premiums will save drivers more money on top of an expected refund that will be distributed after the Michigan Catastrophic Claims Association (MCCA) voted unanimously to grant Governor Whitmer’s request to give refund checks to every Michigander with car insurance.

“One of the most important consumer protections is the uninsured driver amnesty period, which helps drivers who have let their insurance lapse purchase insurance without paying a penalty or increased premium – but they must apply before January 1, 2022,” stated Michigan Department of Insurance and Financial Services Director Anita Fox. “Starting on January 1, drivers can once again be charged a penalty or increased premium after a lapse in coverage, so we strongly encourage all uninsured drivers to contact an agent or insurer today to apply.”