State reports car insurance savings exceed law’s requirements

Cropped Photo: Morgan / Flickr / CC BY 2.0
Cropped Photo: Morgan / Flickr / CC BY 2.0(WNDU)
Published: Jun. 9, 2020 at 10:10 AM EDT
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Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services announced average statewide medical savings connected to the 2019 law that changed the state’s auto insurance coverage plans will exceed what is required in a press release Tuesday.

The law lets drivers have a choice of how much personal injury protection medical coverage they purchase on policies after July 1. PIP medical coverage pays for health care expenses, and some funeral expenses, and makes up about half of a plan’s premium.

Michigan is the only state with unlimited PIP medical coverage available, according to the release.

With more than 99 percent of rate filings completed, data shows that cost savings required by law were surpassed. The greatest reduction was in the $50,000 PIP limit category, with a 53.3 percent drop.

“It’s important that drivers talk to their insurance agents or attend upcoming town halls to make sure they understand the changes coming this summer so they can make the best choices for their families and budgets,” Whitmer said in the release.

The state is offering resources, videos and town hall event schedules for learning about the new law at DIFS also has a no-fault hotline at 833-275-3437 that can be reached 8 a.m.-5 p.m. Monday-Friday. For more information, email

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