Michigan’s Department of Insurance and Financial Services (DIFS) claims the state’s 2019 auto no-fault law cut rates and reduced the number of uninsured drivers. The consulting firm Milliman, hired by the Legislature to evaluate the reforms, shows the opposite.

Average auto insurance premiums climbed roughly $200 from 2019-2024, and uninsured-driver figures moved higher than they were before implementation.

Drivers saw some savings on the PIP slice of their premium, about $357 a year, but those gains evaporated under years of regulator-approved rate hikes.

DIFS released a report analyzing the impact of the state’s bipartisan 2019 auto insurance reform completed by Milliman at the direction of the Legislature. The report highlights how the reform impacted insurance coverage and costs, reduced the number of uninsured drivers, and influenced other key areas across the state.

The Milliman analysis cautions that measuring reform impact requires assumptions about what would have happened absent the law because COVID skewed markets, traffic patterns, and claims.

Even so, the data shows 2024 as the most expensive year measured, with premium levels tracking above early post-reform dips.

In May 2019, Governor Gretchen Esther Whitmer signed the historic auto insurance reform aimed at lowering costs for Michigan drivers, preserving the nation’s highest coverage options, strengthening consumer protections, and giving consumers more choice in their level of Personal Injury Protection (PIP) medical coverage.

In 2019, Democrats and Republicans in the Legislature and I came together to deliver historic, bipartisan auto insurance reform that lowered costs for Michiganders and made insurance coverage more accessible. Six years later, we’re still seeing the positive impact of that reform and how it’s working for Michiganders across the state

Gretchen Esther Whitmer

“I will continue to advocate for protecting Michigan drivers while lowering costs. No-fault reform shows that when we work together, we can make a real difference for Michiganders,” said Governor Whitmer.

“This report shows that auto insurance reform has made real progress in saving Michiganders and their families money while maintaining protections for drivers, including as the only state to offer drivers the option to have unlimited lifetime medical benefits,” said Director Fox.

Thanks to the reform, Michiganders have more choices to help them select the auto insurance coverage that best meets their needs and budget.

The dispute grows sharper around uninsured-driver metrics. DIFS says the share of uninsured drivers fell. Milliman’s data shows Michigan’s uninsured rate increased; what shrank was the gap between Michigan’s rate and the national average.

According to Beinsure, consumers see the mismatch, and so do analysts. Doug Heller at the Consumer Federation of America calls the DIFS narrative gaslighting, arguing the numbers don’t support the regulator’s talking points. We think residents echo that sentiment because premium billing cycles tell a clearer story than a press release.

The report’s economic analysis found:

• Michiganders saw an average overall savings of $357 per vehicle. The savings are largely driven by PIP savings, which decreased on average by $369 per vehicle.
• Wayne County saw the largest savings, with an average reduction of $539 per vehicle.
• Reform has lowered the state’s uninsured motorist rate gap with the national average—from 5.4% higher than the national average pre-reform down to 3.9% higher post-reform.
• After steadily increasing in the years preceding the reform, the total MCCA assessment has decreased by $120 per insured vehicle since 2019.

The study examined how the reform affected access to care for auto accident victims and healthcare providers. Although evaluating the impact with certainty remains difficult, several trends emerged.

The reform introduced a medical fee schedule, and the lower payment rates for attendant care services may have initially contributed to reported difficulties in accessing these services.

The report states that the data suggests access to care issues may have been alleviated due to a variety of factors, such as market adjustments, judicial decisions, and the DIFS complaint process.

Advocates for crash survivors say the report leaves out urgent realities. The 2019 law slashed reimbursement rates for home-care providers that treat catastrophically injured people, triggering closures and leaving survivors scrambling for care.

Milliman couldn’t draw firm conclusions given data constraints but estimated about 3,949 crash victims each year will exhaust the medical coverage provided by their insurer. That finding lands hard among patient groups.

Tom Judd of the Michigan Brain Injury Provider Council says the report sketches an incomplete, almost hollow picture of the post-reform care system.

DIFS doubled down when pressed, reiterating the $357 average savings and insisting the reform lowered uninsured rates. But the numbers baked into the state’s own charts show a trend that moves the other way.

According to Beinsure data and what drivers feel day to day, the reforms haven’t delivered the affordability promised, and the politics around the law grow murkier each year premiums climb.