Changes to laws in Michigan in July will make car insurance cheaper by dropping a requirement for expensive unlimited personal injury protection coverage.
Shopping around for car insurance or dropping the coverage could help Michigan drivers save at least $120 per year, per car.
In any state, shopping around every six months or year could help you save. Car insurance laws and insurance pricing algorithms are constantly changing, and shopping around will ensure you have the best price.
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Car insurance in Michigan is getting a lot cheaper in July.

Michigan has historically had some of the most expensive car insurance in the US, according to the Insurance Information Institute. But, changes to state insurance laws that took effect July 1, 2020, could change that.

Each state sets its own laws on the amount of car insurance coverage required by drivers. In Michigan, a combination of no-fault accident laws and a required unlimited personal injury protection make insurance expensive, according to The Zebra. The average car insurance premium in Michigan was $1,358.62 per year in 2017, according to NAIC data, about $350 higher than the national average.

Personal injury protection, also called PIP, isn’t inherently expensive. This coverage provides benefits that could help with everything from medical bills to house cleaning if you’re injured in a car accident. In states like Michigan with no-fault laws, this coverage is often required. Since claims in no-fault states are always filed with your own insurer, no matter who caused the accident, it’s extra protection for you.

Michigan’s previous laws required companies to pay out an unlimited amount of PIP coverage, while most insurance policies and other states allow limits. Unlimited payouts meant higher costs for insurers and drivers.

Since the law changes went into effect on July 2, Michigan drivers now have the option to opt out of the unlimited coverage. The Michigan Catastrophic Claims Association says that limiting PIP on insurance policies will lower costs by at least $120 per car per year in fees alone.

In every state, shopping around could help you save

No matter where you live, you could save money by shopping around and comparing …read more

Source:: Business Insider


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After a Michigan law changed, drivers can save $120 per car on insurance. It’s a good reminder to shop around, in any state.

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