‏‏ Insurance alliance touts debt-free savings for Michigan drivers. this is how much - Mobilyardim

Insurance alliance touts debt-free savings for Michigan drivers. this is how much


Michigan drivers have saved a total of $4 billion in auto insurance premiums since reforms to the state’s debt insurance law took effect in July 2020, the Insurance Alliance of Michigan said Wednesday.

Because of those reforms, Michigan drivers pay reduced fees to the Michigan Catastrophic Claims Association, the nonprofit organization that manages a fund designed to pay for care for people with serious, long-term injuries. Those rate cuts totaled $1 billion in savings, the insurance association said.

The MCCA will also refund $400 per vehicle to drivers this year, another $3 billion in total savings.

“The results are clear: Michigan’s auto-no-fault reforms are working and saving Michigan drivers billions of dollars on their auto insurance premiums,” said Erin McDonough, executive director of the insurance alliance.

She described the news as a “huge win for Michigan drivers” and said costs could continue to fall.

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State legislators revised Michigan’s auto insurance law in 2019. The reforms will allow drivers to buy cheaper but less robust personal injury coverage – previously they had to have unlimited personal injury protection.


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