(WWJ) Fewer Michigan motorists are driving without auto insurance, according to a new report.
A recent study by the Insurance Research Council found that Michigan experienced the nation's largest drop in uninsured drivers between 2020 and 2022.
The reason? The study cites the state's 2019 auto insurance reform law, which was aimed at increasing consumer protections and lowering insurance costs.
Before that law was passed with bipartisan support, an estimated 20% of Michiganders, and 60% of Detroiters, were driving without insurance.
"Under the old auto insurance law, too many Michiganders had to face the financial and legal risks of driving without insurance, and the new law has made it possible for more Michiganders to protect themselves and their families with auto insurance,” said Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox, in a news release Thursday. “In addition to increasing consumer protections and reducing the number of uninsured drivers, the new law has increased competition by encouraging new companies and affiliates to enter the Michigan market."
Fox said the reform law helped more drivers obtain insurance coverage by putting into place several important consumer protections for Michigan drivers, including:
New low-cost options and rate reductions: Under Michigan’s old law, all drivers had to buy unlimited Personal Injury Protection (PIP) medical coverage, and some drivers who could not afford this coverage took the risk of driving illegally without insurance. Drivers may now choose from six different PIP medical coverage options, ranging from unlimited coverage to the ability to opt out of coverage. In addition, the law included mandatory statewide average PIP medical rate reductions, and in approved rate filings, insurers have met or exceeded those required reductions at every PIP medical coverage level.
Amnesty period for uninsured drivers: Contributing to that decrease, uninsured drivers were given an amnesty period where they could purchase auto insurance without being charged fees or increased premiums solely because they had previously been uninsured. More than 202,000 previously uninsured Michiganders purchased auto insurance before the amnesty period ended on January 1, 2022, including more than 83,200 who had not had coverage for 3 or more years.
Elimination of certain non-driving factors from the rating process: The law prohibits auto insurance companies from using sex, marital status, home ownership, credit score, educational level, occupation, and zip codes in setting a driver’s auto insurance rates. This important consumer protection helped reduce rates and provided more drivers with the ability to get covered.
Fox said now is a great time to shop around for auto insurance and make sure you are getting the coverage that best meets your family’s needs and budget.
Michidanders can find tips for shopping for insurance and an insurance locator to help find licensed agents by visiting Michigan.gov/AutoInsurance.
If you have questions or concerns about your insurance policy, you can call DIFS at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m.