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New Auto Insurance Rate Filings Approved: Average Statewide Savings Exceed New Law Requirements

Media Contact: Laura Hall, 517-290-3779,

Dedicated Auto No-Fault Consumer Hotline: 833-ASK-DIFS (275-3437)

Dedicated Auto No-Fault Consumer Email:


(LANSING, MICH) With rate filings representing more than 99.5% of Michigan’s personal auto insurance market now approved, Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced today that the average statewide Personal Injury Protection (PIP) medical savings under the state’s new auto insurance law will exceed the law’s requirements. The new law also strengthens consumer protections and mandates statewide average savings for 8 years.

“This is a time when Michiganders need to see rate relief, and I am pleased that these reforms will result in savings even greater than the law’s requirements,” said Gov. Whitmer. “It’s important that drivers talk to their insurance agents or attend upcoming town halls to make sure they understand the changes coming this summer so they can make the best choices for their families and budgets.”

Auto insurance premiums are individual to each consumer and may vary on driving record, miles driven, coverages selected, and other allowable factors.

Under the new auto insurance law, Michigan drivers will now have a choice in the amount of PIP medical coverage they purchase on policies issued or renewed after July 1, 2020. PIP medical coverage pays allowable expenses for medical care, recovery, rehabilitation, and some funeral expenses, and typically represents almost half of an individual driver’s premium. Michigan is the only state where unlimited PIP medical continues to be an option.

The aggregated data shows that the average statewide PIP medical reductions exceed the statutory requirements, which use the average statewide rates on May 1, 2019 as the baseline.

PIP Limit Mandated Reduction
(compared to average statewide rate on May 1, 2019)
Avg. Statewide Reduction
Unlimited At least -10% -15.5%
$500,000 At least -20% -30.6%
$250,000 At least -35% -41.8%
$50,000 At least -45% -53.3%

For the first time, DIFS contracted with outside independent actuaries to review all filed rates to confirm compliance with the law. DIFS rejected PIP filings that used any rating factors not permitted under the new law, such as sex, marital status, home ownership, or zip code, and required companies to resubmit filings with the prohibited factors removed. In total, DIFS approved 321 personal and commercial auto filings related to the law change.

Average Savings with different levels of PIP

The new law also increased the mandatory level of Bodily Injury coverage (BI), which is the limit the insurance company will pay if a driver is found legally responsible for damages in a crash. Even when adjusted for statutory increases, the filings continue to show savings.

Average Savings Including BI Increases with different levels of PIP

“DIFS has worked hard in extraordinary circumstances to review and approve auto insurance rates so that drivers can see the benefit of this law starting this summer,” said DIFS Director Anita Fox. “We are also working to educate Michiganders so they can be ready to review and make decisions about their policies and ultimately save money.”

Educational resources, instructional videos and a schedule of virtual town hall events are available for drivers to learn more about the new law at In addition, DIFS continues to operate its dedicated, no-fault hotline with calls being answered Monday through Friday from 8 a.m. to 5 p.m. Drivers can call 833-ASK-DIFS (275-3437) or email with any questions, concerns, or complaints.