Heard on Detroit Today with Stephen Henderson

Michigan’s New Auto Insurance Law Is Complex. Here’s How to Get the Best Value.

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Image credit: Jake Neher

No-fault auto insurance reform is set to impact employers, health insurance companies, and consumers alike.

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It’s been nine months since Governor Gretchen Whitmer signed historic legislation to overhaul auto insurance in Michigan.

The change in law seeks to reform the industry and change coverage for Michigan drivers. The revisions in benefits are not all automatic, making the campaign to educate residents crucial to the reform’s success. 

I think it will drive down [rates] in the city. I think it’s going to be spotty and it’s going to be case-by-case in the suburbs.” — Chad Livengood, Crain’s Detroit Business.

Click the player to learn how the insurance overhaul impacts you and your coverage. 

Chad LivengoodCrain's Detroit Business
Crain’s Detroit Business

Chad Livengood


Chad Livengood, senior editor of Crain’s Detroit Business, joins Detroit Today with Stephen Henderson to discuss his new article about insurers scrambling to comply with the insurance changes before July 1.

The major adjustment for consumers will be the ability to opt out of personal injury protection (PIP). Some employers cover auto accident injury in their private health insurance plans, but unlike personal injury protection in auto-insurance, these plans do not cover lost wages in the case of a debilitating accident.

Personal injury protection makes up a large bulk of premiums, endowing drivers with the ability to purchase different levels of personal injury protection is thought to bring down costs and encourage the uninsured to get insured. 

It will be significant for a lot of Detroiters,” says Livengood.

I think it will drive down (rates) in the city. I think it’s going to be spotty and it’s going to be case-by-case in the suburbs. And even in parts of rural Michigan it may be really limited.”

This legislation also demands that, for the first time, car insurance companies will have to get their rates approved by the state insurance commissioner, says Livengood.

Mark your calendars for July 1, 2020, when this legislation will go into effect. 

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