Michigan drivers should begin to see savings in the cost of auto insurance beginning in July. | Pixabay
Michigan drivers should begin to see savings in the cost of auto insurance beginning in July. | Pixabay
Michigan drivers may see lower costs on their auto insurance bills thanks to auto no-fault legislation passed by Gov. Gretchen Whitmer.
According to Michigan.gov, drivers will be able to choose a Personal Injury Protection (PIP) coverage level appropriate to their needs. This is coverage that pays medical expenses in the event the policyholder is involved in an accident. Michigan is the only state where unlimited PIP continues to be an option.
Insurance companies' PIP medical coverage premiums will be reduced between 10 and 45%, depending on the PIP option selected by the policyholder. In addition, the Michigan Catastrophic Claims Association is lowering its per-vehicle assessment, which will save drivers at least $120 per vehicle.
The new law also prohibits auto insurance companies from determining coverage based on a driver's gender, marital status, homeownership status, credit score or zip code. A new unit has been created to investigate and prosecute auto insurance fraud and other criminal activity.
Auto insurance companies must now file their rates and policies with the Department of Insurance and Financial Services prior to offering rates to customers, and auto insurance companies can be fined for certain violations of the law.
Other changes include an increase in the residual bodily injury coverage limit and increases in the amount that can be recovered in small claims court for uninsured damages.
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