Michigan No-Fault Auto Insurance Reform

How Michigan auto insurance is changing
and how you can get ready
Michigan residents pay some of the highest auto insurance rates in the country. Why is that?

Reason #1

Michigan has the highest auto insurance coverage requirement sin the United States — most notably Personal Injury Protection (PIP) insurance with unlimited lifetime medical coverage for car accident injuries. Michigan’s insurance requirements guarantee many health and recovery benefits to people injured in car accidents, including reimbursement for lost wages, in-home care and medical treatments.

Reason #2

These unlimited benefits make Michigan’s car insurance coverage arguably the best in the country for those injured in car crashes. But there are expensive downsides: The system attracts costly medical claims, fraud and legal battles among insurers, medical providers and policy holders over what’s covered and how much it’ll cost.

Reason #3

Insurance companies elevate rates for all drivers to account for those expensive losses. The problem is compounded when drivers drop insurance coverage because they can’t afford it.

Michigan law makers and drivers spent decades debating how to reduce the cost of auto insurance in the state.

Now, thanks to Michigan no-fault auto insurance reform, change is on the way.