Posted by Scott Bolthouse | The Huron Hub| June 9, 2020

Under a new auto insurance law, Michigan drivers will now have a choice in the amount of personal injury protection (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.

“This is a time when Michiganders need to see rate relief, and I am pleased that these reforms will result in savings even greater than the law’s requirements,” Gov. Whitmer said in a statement. “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.”

According to the state of Michigan, 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. (Images are courtesy state of Michigan)
 

The Michigan Department of Insurance and Financial Services says it contracted with outside independent analysts to review all filed rates to confirm compliance with the law.

DIFS rejected PIP filings that used any rating factors not permitted under the new law, such as sex, marital status, home ownership, or zip code, and required companies to resubmit filings with the prohibited factors removed, the department said.

In total, DIFS said it approved 321 personal and commercial auto filings related to the law change.

“DIFS has worked hard in extraordinary circumstances to review and approve auto insurance rates so that drivers can see the benefit of this law starting this summer,” said DIFS Director Anita Fox. “We are also working to educate Michiganders so they can be ready to review and make decisions about their policies and ultimately save money.”

Auto insurance premiums are individual to each consumer and may vary on driving record, miles driven, coverages selected, and other factors.

Informative resources, instructional videos and a schedule of virtual town hall events are available for drivers to learn more about the new law at Michigan.gov/autoinsurance.