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'The Impact of Michigan Auto Insurance Reform’ Report Finds that Auto Insurance Costs for Michiganders Reduced by $357 per Vehicle  

Media Contact: [email protected]   

Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints  

 

FOR IMMEDIATE RELEASE: December 2, 2025
 

(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS) released a report analyzing the impact of the state’s bipartisan 2019 auto insurance reform completed by Milliman, Inc. at the direction of the Legislature. The report highlights how the reform impacted insurance coverage and costs, reduced the number of uninsured drivers, and influenced other key areas across the state. 

 

In May 2019, Governor Whitmer signed the historic auto insurance reform aimed at lowering costs for Michigan drivers, preserving the nation’s highest coverage options, strengthening consumer protections, and giving consumers more choice in their level of Personal Injury Protection (PIP) medical coverage. 

 

"In 2019, Democrats and Republicans in the Legislature and I came together to deliver historic, bipartisan auto insurance reform that lowered costs for Michiganders and made insurance coverage more accessible. Six years later, we’re still seeing the positive impact of that reform and how it’s working for Michiganders across the state,” said Governor Whitmer. “I will continue to advocate for protecting Michigan drivers while lowering costs. No-fault reform shows that when we work together, we can make a real difference for Michiganders.” 

 

“This report shows that auto insurance reform has made real progress in saving Michiganders and their families money while maintaining protections for drivers, including as the only state to offer drivers the option to have unlimited lifetime medical benefits,” said Director Fox. “Thanks to the reform, Michiganders have more choices to help them select the auto insurance coverage that best meets their needs and budget. DIFS is here to help answer any questions about the law. Drivers can call 833-ASK-DIFS, Monday through Friday from 8 a.m. to 5 p.m., or visit Michigan.gov/AutoInsurance for more information.”   

 

The report's economic analysis found:  

  • Michiganders saw an average overall savings of $357 per vehicle. The savings are largely driven by PIP savings, which decreased on average by $369 per vehicle. 
  • Wayne County saw the largest savings, with an average reduction of $539 per vehicle. 
  • Reform has lowered the state's uninsured motorist rate gap with the national average—from 5.4% higher than the national average pre-reform down to 3.9% higher post-reform. 
  • After steadily increasing in the years preceding the reform, the total MCCA assessment has decreased by $120 per insured vehicle since 2019. 

 

The study examined how the reform affected access to care for auto accident victims and healthcare providers. Although evaluating the impact with certainty remains difficult, several trends emerged. The reform introduced a medical fee schedule, and the lower payment rates for attendant care services may have initially contributed to reported difficulties in accessing these services. The report states that the data suggests access to care issues may have been alleviated due to a variety of factors, such as market adjustments, judicial decisions, and the DIFS complaint process. 

 

If Michiganders have questions or concerns with their insurance policy or wish to file a complaint against an agent or company, contact DIFS at 833-ASK-DIFS Monday through Friday from 8 a.m. to 5 p.m. or visit Michigan.gov/DIFScomplaints. 

 

Read the full report at Michigan.gov/DIFS.   

 

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.   

 

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