Michigan Insurance and Financial Services issued the following announcement on June 9.
With rate filings representing more than 99.5% of Michigan’s personal auto insurance market now approved, Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced today that the average statewide Personal Injury Protection (PIP) medical savings under the state’s new auto insurance law will exceed the law’s requirements. The new law also strengthens consumer protections and mandates statewide average savings for 8 years.
“This is a time when Michiganders need to see rate relief, and I am pleased that these reforms will result in savings even greater than the law’s requirements,” said Gov. Whitmer. “It’s important that drivers talk to their insurance agents or attend upcoming town halls to make sure they understand the changes coming this summer so they can make the best choices for their families and budgets.”
Auto insurance premiums are individual to each consumer and may vary on driving record, miles driven, coverages selected, and other allowable factors.
Under the new auto insurance law, Michigan drivers will now have a choice in the amount of PIP medical coverage they purchase on policies issued or renewed after July 1, 2020. PIP medical coverage pays allowable expenses for medical care, recovery, rehabilitation, and some funeral expenses, and typically represents almost half of an individual driver’s premium. Michigan is the only state where unlimited PIP medical continues to be an option.
Original source can be found here.
Source: Michigan Insurance and Financial Services
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