UP Gazette

Michigan drivers could be experiencing savings after new auto insurance laws went into effect July 1.

The new law allows drivers to choose a level of medical coverage, instead of requiring that all policyholders have unlimited Personal Injury Protection (PIP) to cover expenses in case of injury in an auto accident. In addition, insurance companies are required to reduce the premium for this coverage. The total amount of savings depends on the coverage selected.

Previously, the cost of PIP comprised 42% of the average cost consumers were paying for auto insurance. 

Sen. Ed McBroom | #MiSenateGOP

"Our auto insurance rates got out of control," Sen. Ed McBroom (R-Waucedah Township) said in a YouTube video. "We were so out of balance with other states. Unlimited lifetime coverage, no fee schedules, and many other ridiculous lawsuits and changes over time made it an unsustainable system."

McBroom said that instead of being one-size-fits-all, consumers will now be faced with choices regarding health coverage, benefits and PIP. "It's going to be really critical that you do a lot of studying and work with your insurance agent, with your family, your finances to determine what’s the appropriate level of coverage for you and for your choices," McBroom said in the video. 

McBroom said Michigan still has the best coverage options in the nation. "We’re reducing your catastrophic claims assessment by $120 per vehicle right off the bat, and depending on what level of health coverage you have presently on your other policies and what choices you make, you could be saving up to 100% on the health coverage and overall savings between 10 and 40% of the overall bill," McBroom told his constituents.

For more information, visit Michigan.gov or contact Senator McBroom's office at 517-373-7840. The Michigan Department of Insurance and Financial Services encourages drivers to shop around for a policy that matches their needs or contact an insurance agent to discuss options.