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Whitmer announces savings for Michigan drivers under auto insurance reform law

Driving a Car
Posted at 9:47 AM, Nov 16, 2021

LANSING, Mich. — Gov. Gretchen Whitmer announced on Tuesday that drivers should expect lower costs and more savings for their auto insurance policies compared to the previous year.

Under the new auto insurance law, drivers should see on average between 25-62% in savings on the PIP medical portion of their policies, depending on which coverage options they choose this year, a news release said.

Whitmer also reminded drivers who have let their auto insurance lapse that time is running short to take advantage of buying insurance penalty-free before the Jan. 1 deadline.

“Michigan drivers called for relief from high auto insurance rates for decades, and I am pleased that this bipartisan legislation has resulted in savings, increased consumer protections and more consumer choices than ever before,” Whitmer said. “Drivers are able to choose the coverage level that best meets their families’ needs and budget, and even those who’d like to keep unlimited coverage, which provides the nation’s most generous benefits, are still saving money.”

The lower premiums will save drivers more money on top of the expected refund that will be distributed after the Michigan Catastrophic Claims Association voted to grant the governor’s request to deliver refund checks to every Michigan resident with auto insurance.

READ MORE: What is the MCCA, and why are they sending you a refund check?

“One of the most important consumer protections is the uninsured driver amnesty period, which helps drivers who have let their insurance lapse purchase insurance without paying a penalty or increased premium – but they must apply before Jan. 1, 2022,” Michigan Department of Insurance and Financial Services Director Anita Fox said. “Starting on Jan. 1, drivers can once again be charged a penalty or increased premium after a lapse in coverage, so we strongly encourage all uninsured drivers to contact an agent or insurer today to apply.”

READ MORE: Crash survivors ask: Is governor's proposed refund from money set aside for their care?

READ MORE: State agency says some insurers are not following intent of no-fault auto reform law