More than 50 auto insurance companies choose to do business in Michigan since changes to state no-fault auto insurance were passed by a bipartisan group of lawmakers and signed into law by the governor in 2019.
Michigan Insurance Alliance said the number of new businesses in the state is creating more competition to cut costs.
This follows news of Assure’s latest rankings. how to find from michigan auto insurance rates continue to decline after being the highest in the country for years. Last year, Michigan was ranked no. 2. Now Michigan rank no. 4 behind Florida, Louisiana and Delaware. The lower cost of from michigan auto insurance, relative to other states, is attributed to the 2019 bipartisan no-fault auto reform.
“Since the implementation of the Reasonable Medical Fee Schedule as part of the bipartisan no-fault auto insurance reforms of 2019, we have seen a steady growth in the number of auto insurance companies wishing to operate in Michigan“, said the executive director of the IAM, Erin McDonough. “In addition to the biggest refund in history with the $400 vehicle checks, Michigan drivers can put more money back in their pockets while shopping. This is another example of how bipartisan no-fault reforms work and should be able to continue to work.”
Additional benefits of the 2019 bipartisan no-fault auto reforms include: More than 202,000 Michigan drivers without prior coverage have purchased auto insurance since the reforms took effect on July 2, 2020, according to data from IAM member companies. Of these, 83,238 were Michigan drivers who have not had auto insurance for three or more years.
Fee reductions by the Michigan Catastrophic Loss Association in 2020 and 2021 totaled more than $1 billion per year. Combined with the $400 reimbursements per vehicle, there were $5 billion-more in estimated savings. This does not take into account the savings drivers can achieve by choosing different levels of Personal Injury Protection (PIP). As part of bipartisan no-fault auto insurance reforms, insurance companies were required to reduce statewide average PIP medical premiums for eight years, helping to save money. , according to Michigan Department of Insurance and Financial Services.