Michigan’s New Auto Insurance Deal: When To Expect Lower Rates

MICHIGAN — Michigan is lowering its auto insurance rates through legislation, but the effects won’t be passed on to Michiganders until next year.

Gov. Gretchen Whitmer is expected to sign a bill this week that is supposed to lower Michigan auto insurance rates, but the mandatory 10 percent rate decreasewon't be enforced until July 2020, WDIV reported. A mandatory fee schedule for medical rates also goes into effect at that point, but it has a three year phase-in. Those rates haven't been set yet, the report said.

Here’s what we know:

Under the new bill, drivers can choose from four levels of PIP coverage. Unlimited coverage, which is currently mandatory, will be available but no longer required. Drivers will see a 10 percent savings on unlimited coverage.
Choosing $500,000 PIP will save drivers about $240 a year; $250,000 PIP coverage will reduce yearly rates by about $420 a year and a $50,000 option will equal about $540 saved in a year.

When choosing PIP coverage, drivers should check to see if their health insurance covers disability. Whether it does or doesn't should be considered when picking which level of coverage is best, WDIV reported.

Read more here.