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Lowering the cost of auto insurance in Michigan

 Michigan Governor Gretchen Whitmer has announced that drivers in the state should expect lower costs and more savings for their auto insurance policies than the previous year. This is under the recently signed new auto insurance reform law.





She noted that drivers should see greater savings in the PIP medical portion of insurance policies this year, averaging between 25 to 62 percent, depending on the coverage options they choose.


Governor Whitmer reminded drivers who let their car insurance run out that time was running out, and advised them to take advantage of purchasing insurance without penalty before the January 1, 2022 deadline.


"For decades, Michigan drivers have advocated for high auto insurance rates to be lowered, and I am pleased that this bipartisan legislation has resulted in savings for them, increased consumer protection, and more choices than ever before," Whitmer said.


She added that drivers are able to choose the level of coverage that best meets their family's needs and budget, and even those who want to keep unlimited coverage, which offers the most generous benefits in the country, can still save money.


Lower premiums will save drivers more money, in addition to the expected refund that will be distributed after the Michigan Catastrophic Claims Association (MCCA) voted unanimously to grant the governor's request to hand out refund checks to all Michigan residents who have auto insurance.


"One of the most important consumer protections is the amnesty period for uninsured drivers, which helps drivers who let their insurance run out to buy insurance without paying a fine or increasing the premium - but they must apply before January 1, 2022," the Michigan Department of Insurance said.


“From January 1, drivers can be fined again or the premium may be increased after the coverage period has expired, so we strongly encourage all uninsured drivers to contact a dealer or insurer today to apply,” said Anita Fox, Director of the Department of Insurance and Financial Services (DIFS). the demand".


Michigan's new auto insurance law has been in place for more than a year, and the state continues to strengthen consumer protections, help families access care, and review rates offered by auto insurance companies.


  • In addition to the reductions that have been experienced Michigan include:


  • An estimated $1 billion in auto insurance savings has returned to the pockets of Michigan residents.


  • A 27% cut was made, which means Michigan is no longer the most expensive state for auto insurance.


  • Market competition has increased with 36 new companies or affiliates entering the Michigan auto insurance market so far.


  • A 61% decrease in the Michigan Catastrophic Claims Association's annual valuation, with refunds prepared for valuation surplus.


  • More than 66,000 previously uninsured Michigan residents have purchased auto insurance coverage with no fee or penalty under the amnesty period by law.

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