Michigan’s auto insurance market continues to show measurable changes tied to the state’s 2019 bipartisan reform. On December 2, 2025, the Michigan Department of Insurance and Financial Services (DIFS) released a Milliman, Inc. analysis, completed at the Legislature’s direction, that reviews how the reform has affected costs, coverage, and related outcomes for drivers and the broader system.
What The 2019 Reform Set Out To Do
In May 2019, Governor Gretchen Whitmer signed Michigan’s auto insurance reform into law. The reform aimed to lower costs for drivers while preserving Michigan’s high coverage options. It also sought to strengthen consumer protections and expand consumer choice, particularly around Personal Injury Protection (PIP) medical coverage levels. The report frames these goals as the guiding objectives that shaped the law’s structure and the subsequent market adjustments.
Governor Whitmer stated that the bipartisan reform has lowered costs and made coverage more accessible across the state. She also stated that the state continues to see positive impacts six years after enactment, and she plans to continue advocating for protecting drivers while lowering costs.
DIFS Director Anita Fox said the report shows progress in saving Michiganders money while maintaining protections. She highlighted that Michigan remains the only state that offers drivers the option for unlimited lifetime medical benefits. She also emphasized that the reform gives residents more choices to match coverage with their needs and budgets. Director Fox noted that DIFS is available to answer questions through its hotline and website.
Key Cost And Coverage Findings
The report’s economic analysis identified several cost and market outcomes:
- Average savings statewide: Michiganders experienced an average overall savings of $357 per vehicle.
- PIP-driven reductions: The savings were primarily driven by PIP changes, with PIP costs decreasing by an average of $369 per vehicle.
- Largest county-level savings: Wayne County posted the most significant average reduction at $539 per vehicle.
- Uninsured motorist rate gap narrowed: Michigan’s uninsured motorist rate moved closer to the national average. Before reform, the state’s uninsured rate sat 5.4% higher than the national average. After reform, the gap decreased to 3.9%.
- MCCA assessment decline: After rising steadily in the years leading up to reform, the total Michigan Catastrophic Claims Association (MCCA) assessment fell by $120 per insured vehicle since 2019.
Together, these data points represent the report’s central cost and affordability conclusions.
Access To Care And System Effects
Milliman’s study also examined how reform affected access to care for auto accident victims and the experiences of healthcare providers. The report notes that evaluating this impact with certainty remains difficult. However, it identifies several trends based on available data.
The reform introduced a medical fee schedule. According to the report, lower payment rates for attendant care services may have initially contributed to reported difficulty accessing these services. Over time, the data suggests these access issues may have eased. The report lists several potential contributors to that change, including market adjustments, judicial decisions, and the DIFS complaint process.
The report presents these points as observed trends rather than definitive causal findings.
Consumer Support And Next Steps
DIFS encouraged drivers to contact the department if they have questions about their policies or want to file a complaint against an agent or insurer. The department directs consumers to call 833-ASK-DIFS during business hours or use the online complaint portal. DIFS also pointed readers to its auto insurance information hub and the full Milliman report on the state website.
In closing, DIFS reiterated its mission to ensure that Michigan residents have access to safe and secure insurance and financial services. The department also emphasized its role in consumer protection, outreach, and financial literacy, as well as its broader goal of supporting economic growth and sustainability across the insurance and financial services sectors.
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