Tri-City Sun

Michigan's new car insurance laws are set to start July 1, which would require drivers to have no-fault insurance, among other reforms previously adopted by the state Legislature. 

Other changes in the overhaul include paying for unlimited coverage in case of an accident and allowing drivers with health insurance to reject personal injury protection, according to MLive.com. 

According to MLive, the state’s Department of Insurance and Financial Services said the first initial drivers filing for unlimited coverage see a reduction of an average of 16%.

“It doesn’t matter which coverage option you choose, the savings we’re seeing are across the board," Rep. Graham Filler (R-Dewitt) said in a House Republicans' statement. "This is great news for every Michigan driver."

Michigan Department of Insurance and Financial Services (DIFS) provided data sharing the percentage of average savings per coverage option. No-fault insurance covers wage loss benefits, medical expenses, replacement services, and property damage, regardless of who caused the accident, according to the State of Michigan website. 

Michigan drivers are required to have PIP (personal injury protection) to have plates on their car, MLive reported.

Gov. Gretchen Whitmer passed no-fault insurance in 2019, MLive.com reported. This was an effort to reduce Michigan’s car insurance rates, which are the highest in the country.

This law marks the end of Michigan’s requirement that motorists provide insurance coverage that gives unlimited lifetime medical benefits in the event of an injury, MLive.com reported. Now, requirements are reduced to eight years.

"The new law means insurance companies will pay out less for no-fault coverage when accidents happen. But rather than passing along savings from this reduced exposure, the rate filings show that many insurers will be pocketing millions more under the new law,” Heller said, according to MLive.com.

The plan also offers Michigan residents protection so that factors other than location, such as age, sex, marital status and credit score, were not used to determine rates.