• IAM

IAM applauds Gov. Whitmer, DIFS for highlighting huge savings from new auto no-fault law

The Insurance Alliance of Michigan (IAM) today applauded Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) for releasing an independent report highlighting expected savings from Michigan’s new auto no-fault law, which takes effect July 2. The report found approved rate filings exceeded the laws required rate reductions and prove bipartisan auto no-fault reforms passed by the Legislature and signed by the Governor continue to bring savings to drivers across Michigan.


“This report by the Department of Insurance and Financial Services shows that reforming auto no-fault continues to deliver significant relief for consumers who for too long have been paying some of the highest premiums in the nation,” said Erin McDonough, executive director of IAM. “Michigan’s new auto no-fault law, while not perfect, will finally give drivers a choice in the level of medical coverage they include with their auto insurance and give them more control over how much they can save on their premium while cracking down on fraud and reining in price gouging and massive overcharging by medical providers.”


Beginning July 2, 2020, drivers will be able to choose between several levels of medical coverage, including:


  • Unlimited lifetime medical benefits, which is required now

  • $500,000 in Personal Injury Protection (PIP)

  • $250,000 in PIP coverage

  • $50,000 in PIP coverage for those on Medicaid

  • PIP Opt-out for those with Medicare or separate health insurance that covers auto accident-related injuries


According to the independent DIFS report, as of April 24, 2020, the initial six filings approved represent a quarter of Michigan’s auto insurance market. The aggregated data shows the average, statewide PIP medical reductions exceeding the statutory requirements.

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