What’s happening: A new analysis from the Michigan Department of Insurance and Financial Services (DIFS) shows that Michigan’s 2019 bipartisan auto no-fault reforms are working as intended – lowering costs for drivers and employers and strengthening the insurance market. The report was authored by the independent actuarial and consulting firm Milliman, Inc. at the request of the State Legislature.
Key findings:
- Average statewide savings: $357 per vehicle
- Michigan’s uninsured driver rate dropped close to the national average (from 5.4% higher pre-reform down to 3.9% post-reform)
- Michigan Catastrophic Claims Association (MCCA) fees decreased by $120 per insured vehicle since 2019
Why it matters: Lower auto insurance costs help Michigan families and businesses, improve affordability and support talent attraction and retention – all key to building a resilient, competitive economy.
What we’re saying: We view the findings as clear evidence that the reforms are reducing costs while helping stabilize Michigan’s insurance market. But if Michigan truly wants to make its auto insurance system more affordable for families and employers and support our talent and economic competitiveness, we should look at whether it makes sense to keep our wholly unique system or move to an insurance program more in line with other states.
Go deeper: Read our statement here. Read the full report at Michigan.gov/DIFS.