Increased competition helps drive down costs for Michigan drivers

LANSING – The Insurance Alliance of Michigan today announced 42 auto insurance companies have entered the Michigan market since bipartisan auto no-reforms became law three years ago, creating greater competition to drive down costs.  

This follows a trend reported last year by the Detroit Free Press with new companies coming into Michigan now that drivers are allowed to select the level of Personal Injury Protection (PIP) coverage that fits their needs and their budget, along with other parts of the bipartisan auto no-fault reforms that cracked down on fraud and reined in overcharging by medical providers. 

“Michigan drivers are receiving $400 per-vehicle refunds – the biggest refund in history – because of the 2019 bipartisan auto no-fault reforms,” said IAM Executive Director Erin McDonough. “More auto insurance companies than ever before are doing business in Michigan and insured Michigan drivers can put more money back into their pockets by shopping around. Auto no-fault reform is working and lawmakers should let it keep working so Michigan drivers can continue saving money.”

According to IAM member company data, in December 2021, nearly one in four Michigan drivers chose a level of PIP coverage less than unlimited. Over the prior year, that number has grown from 15% to approximately 25%. Insurers representing nearly 88% of the auto insurance market in Michigan responded to this survey.

More than 202,000 Michigan drivers have purchased auto insurance since reforms took effect on July 2, 2020, according to IAM member company data. Of those, 83,238 were Michigan drivers who didn’t have car insurance for three years or more.

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IAM is a government affairs and public information association that represents auto, home and business insurance companies and related organizations operating in Michigan. Learn more about IAM and its members on Facebook, Twitter or at www.insurancealliancemichigan.org.