Report shows rising insurance costs and more uninsured drivers after reform.
The debate over Michigan’s 2019 auto no-fault law has grown louder as new findings show a different picture than the one state officials presented to the public. The Michigan Department of Insurance and Financial Services recently promoted a report claiming drivers saw lower auto rates for uninsured vehicles on the road since the law changed. But the independent review behind that report shows the opposite. Average car insurance bills in Michigan have gone up by nearly $200 between 2019 and 2024, and the number of uninsured drivers has climbed instead of fallen. These lower auto rates have added to confusion and frustration for residents who expected lower bills and steady coverage after the reform.
The report at the center of the dispute was prepared by Milliman, a consulting group hired by the Legislature. The group measured changes in Personal Injury Protection costs, often referred to as PIP. The state pointed to PIP savings of roughly $357 a year as proof that the law helped drivers. But these savings came from only one part of a much larger bill. Higher rates in other areas quickly wiped out the drop in PIP. Some increases were in the double digits and were approved by the same state office that said drivers were saving money. Bills briefly dipped after the law passed, but soon climbed again, leaving 2024 as the highest-priced year in the study.
Milliman noted that strong assumptions were needed to calculate any savings. The report explained that the early years of the law overlapped with the COVID-19 pandemic, which heavily affected driving patterns and claim levels. Because of this, the report said simple year-to-year comparisons could not show a clear cause. Even with these limits, the numbers still showed that rates went up and fewer drivers kept coverage. Despite this, officials publicly said the report proved the reforms worked. This mismatch drew criticism from consumer advocates who said the statements painted a picture far from reality.
One insurance expert from the Consumer Federation of America said these claims were misleading and that residents were already aware of the truth each time they paid their bills. According to this expert, the state’s remarks made it seem as if officials were trying to protect insurance companies or avoid admitting that the expected savings never came. A spokesperson for the department stood by the earlier claims and repeated the same figures, even though the report confirmed that more drivers were now uninsured. The only “drop” shown in the data was the difference between Michigan’s uninsured rate and the national average, not an actual reduction in the state’s own numbers.
The law’s effect on people with catastrophic injuries has caused even deeper concern. The reform sharply cut payments to home-care providers assisting crash survivors with long-term medical needs. Milliman’s report said limits in available data prevented solid conclusions but estimated nearly four thousand injured residents each year will run out of medical coverage provided by their plans. Advocates for these survivors said the report did not capture the full scope of hardship. Many described the current system as a barrier that leaves the most seriously injured residents without the support they once had. As the debate continues, drivers, survivors, and care providers are left waiting for honesty about the true impact of the law and whether leaders will address these growing problems.
Sources:
Michigan officials mislead on report about no-fault insurance law
Michigan’s Insurance regulator claims the state’s auto no-fault law cut rates
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