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New report finds 20% of Michigan drivers don’t have car insurance

A recent report released by Insurify finds Michigan has the fourth-highest percentage of uninsured drivers in the nation, with 20% of drivers – or one in five – driving without car insurance.

“This report by Insurify underscores the importance of the auto no-fault reforms passed by the Legislature and signed into law by the governor this year,” said Tricia Kinley, executive director of the Insurance Alliance of Michigan. “These reforms should bring down costs for drivers across Michigan who have been paying the highest auto insurance premiums in the country and make coverage more affordable for families who have been forced to choose between purchasing car insurance or groceries.”

Last month, the Michigan Catastrophic Claims Association (MCCA) announced its yearly, per vehicle fee charged to drivers in Michigan is decreasing to $100 for drivers who choose unlimited, lifetime medical benefits. Drivers who choose other tiers of coverage will not pay any fee, which is currently $220 per-vehicle. This fee decrease signals the new auto no-fault law is already beginning to work.

Michigan’s new auto no-fault law, which took effect June 11, includes several changes expected to reduce costs for drivers, including a fee schedule to rein in overcharging by medical providers and tiered choices in medical coverage.

“For more than 40 years, drivers have been forced to purchase unlimited, lifetime medical benefits, which drove up the cost of auto insurance in Michigan to the most expensive in the country,” Kinley said. “By next summer, Michigan drivers will have more choices – including unlimited, lifetime benefits – so they can choose a level of coverage that works best for them and their families.

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

The five states with the highest rate of uninsured motorists are:

  1. Florida (26.7%)

  2. Mississippi (23.7%)

  3. New Mexico (20.8%)

  4. Michigan (20.3%)

  5. Tennessee (20%)

The national average is 12.8%.

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