Michiganders Exercising Their Right

LANSING — Michigan drivers are taking advantage of one of the key benefits of auto no-fault reform: the ability to choose their level of medical coverage.

According to data compiled by the Insurance Alliance of Michigan (IAM) from its member companies, 70% of drivers are continuing to carry unlimited, lifetime medical benefits. Meanwhile, the number of drivers who chose other levels increased by 3% during the first three months of 2021. Now, 17% of Michigan drivers are choosing other levels of coverage. The remaining 13% are unknown at the time of this release.

“It’s great to see so many drivers exercising their right to choose, whether it’s to stick with unlimited, lifetime medical benefits or choose a different level of medical coverage,” said IAM Executive Director Erin McDonough. “The most important thing is Michiganders have the freedom to choose an affordable plan that works best for them and their family.”

Until last year, drivers were forced to purchase unlimited, lifetime medical benefits with their auto insurance. This expensive mandate, coupled with unchecked medical expenses and rampant fraud, caused Michigan’s auto insurance premiums to climb to the highest in the country. Now, drivers can choose from several different levels of medical coverage, many of which can reduce their auto insurance premiums.

“This data is just one more example of no-fault reform working for drivers across the state,” McDonough said.

A recent report from Insure.com found Michigan’s auto insurance premiums had decreased by 27% last year thanks to reforms passed by the Legislature and signed into law by Gov. Gretchen Whitmer. A final piece of the auto no-fault reform puzzle, a fee schedule to rein in overcharging by medical providers, will take effect in July.

The lower rates drivers are paying now are based on anticipated savings from the medical fee schedule. The Michigan Catastrophic Claims Association (MCCA), which reduced its yearly per-vehicle fee by 60% over the last two years, also based its reduction on the upcoming fee schedule. This summer, drivers who choose unlimited, lifetime medical benefits will pay $86 — down from $220 in 2019. Drivers that choose other forms of coverage will pay nothing.

IAM is a government affairs and public information association that represents auto, home and business insurance companies and related organizations operating in Michigan. Learn more about IAM and its members on Facebook, Twitter or at www.insurancealliancemichigan.....