In the summer of 2020, Michigan lawmakers passed bills aimed at auto insurance reform. This bill was designed to change the way the no-fault laws operated in Michigan regarding auto insurance and help residents of Michigan save on their auto insurance policies. Some of the reform went into place immediately in 2020, while other bits of the reform were slowly rolled out and went into effect a year later in 2021. To this day, many Michigan residents are not fully aware of the auto insurance reform and how it impacts their auto insurance. As we at Guy Hurley McNeil, auto insurance providers in the greater Rochester Hills, MI region, explain more about auto insurance reform in Michigan.
Why Was There a Push for Auto Insurance Reform?
The state of Michigan had the highest auto insurance costs in the nation, costing Michigan drivers a lot of money. A lot of the reason for these high costs is that insurance providers were subject to paying out high expenses in catastrophic accidents that resulted in major injuries. The theory was that insurance companies could reduce auto insurance premiums by reforming what insurance companies had to pay for in accidents and placing limits on payouts.
Did Auto Insurance Reform Work?
Auto insurance reform has caused the cost of auto insurance policies to drop by about 20 percent in Michigan since the reform happened. However, auto insurance policies are now very complex in the state of Michigan, and there is a lot of complexity about billing and what insurance companies have to cover, and at what expense. As such, insurance rates have not dropped as much as state lawmakers had hoped.
Auto insurance reform has led to consumers having many questions about their auto insurance policies. If you have questions about your policy or are in the market for a new policy, the team at Guy Hurley McNeil, serving the greater Rochester Hills, MI area, would love to help you. Contact us today to get started.