Monroe Review

Michigan drivers will benefit from the state's car insurance reform as the new law has taken effect earlier this month.

Michigan has the highest car insurance rates of any state in the nation, and these costs are particularly burdensome in the midst of the current COVID-19 pandemic. 

“We’ve all been anticipating this day ever since the reforms were approved by the House and Senate last year,” said Rep. Jason Sheppard (R-Temperance) in a statement on Michigan House Republicans. “Reducing car insurance rates has been my top priority since I first started serving our community in Lansing."

Sheppard signed the auto no-fault legislation last year to ensure quality coverage while expanding options for economically disadvantaged families and individuals. According to the Detroit Regional Chamber, Michigan drivers pay for the highest coverage options in the country. 

"I’m proud to report that the people of Monroe County will finally start to see changes that make it more affordable to drive in Michigan beginning this week," said Sheppard, according to Michigan House Republicans. "Between the guaranteed rate rollbacks and the new coverage options, these reforms will save Michigan drivers on their car insurance.”

The new law provides coverage options to drivers for the first time. This program is called the Personal Injury Protection (PIP) Choice, and drivers may opt out if they have Medicare part A and B or have qualified health coverage. The coverage levels are $50,000, $250,000, $500,000 and unlimited.  

Consumers will gain increased protection due to the elimination of "non-driving factors." Non-driving factors prohibit auto insurance companies from using factors other than a driver's record to determine auto insurance rates. These factors include sex, marital status, homeownership, credit score, educational level, occupation and zip code. 

The Michigan Catastrophic Claims Association (MCCA) has also announced a reduction of its per-vehicle assessment fee from $220 to $100. This new policy began July 1 and sets the fee at its lowest rate in 20 years. 

Eligibility for these new benefits requires that Michigan drivers have insurance policies that were issued or renewed after July 1. 

To see if you qualify, you must contact your car insurance provider. You can find further information at Michigan.gov. Additional and detailed information concerning the new law can also be found at ReduceMiRatesNow.