Auto insurance changes will raise rates

Last week, the Senate passed legislation to drive up the cost of auto insurance by altering the state’s 2019 no-fault reforms. I did not support this. Prior to 2019, Michigan had the highest auto insurance rates in the nation with a one-size-fits-all mandate approach to insurance. According to a report from the Department of Insurance and Financial Services, Michigan drivers saved a cumulative $5 billion on their insurance rates from 2019 to 2022. Specifically, these savings were found in “personal injury protection” or PIP coverage—this coverage was previously mandated, and individuals were not allowed to use their own existing health insurance to help cover auto-related injuries.

After the passage of the 2019 auto insurance reforms, Michigan drivers finally found relief from some of the highest auto insurance rates in the nation. People were given the ability to choose the best coverage for themselves and their family without price gouging or costly lawsuits driving up their rates. Now, some legislators are taking that historic step forward, three steps in reverse. Even Gov. Whitmer’s Department of Insurance and Financial Services director has pointed out that with these bills, drivers can count on seeing significant impacts to their auto insurance premiums, increased catastrophic claims assessments, and less coverage for lower PIP levels.

Increased rates and less competition in the marketplace are not solutions to the struggles Michiganders are facing under the weight of higher costs of living and historic inflation. More than 200,000 previously uninsured drivers purchased insurance since the 2019 reforms. However, rising insurance rates will harm hardworking people trying to make ends meet and lead to more uninsured drivers on our roads.

Should you have any questions or concerns about the legislature or state government, please do not hesitate to contact my office by going to www.SenatorAricNesbitt.com. You may also reach out by calling (517) 373-0793 or by email at SenANesbitt@senate.Michigan.gov. My staff would be happy to assist with issues you may be having with state government agencies, and I look forward to listening and learning about your priorities and concerns for our state.