PORTAGE,Mich — The state of Michigan is known for having some of the highest auto insurance rates in the country.
The Michigan Department of Insurance and Financial Services announced that uninsured drivers could purchase auto insurance without penalty.
Thanks to new legislation in Michigan, drivers would see lower auto insurance rates in the coming month.
Gov. Gretchen Whitmer signed the bipartisan auto no-fault legislation last week. The new law allowed Michigan drivers to maintain the highest coverage option in the country.
“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,” Whitmer said. “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.”
Alongside having better rates, the new law also allowed drivers to have a choice in the amount of personal injury protection or PIP medical coverage.
It will also increase bodily injury coverage in the case a driver is found legally responsible for damages in a crash.
Jeff Duncan, an Allstate agency owner said the changes were long overdue.
"When we wrote it in 1974 auto insurance was very minimal and it never changed. So, now we have a level playing field and people are seeing better rates that are much more affordable. I think we are going to see a lot more people carrying insurance that couldn’t afford it before,” Duncan said.
Auto insurance premiums may vary on driving record, miles driven, coverage's selected, and other allowable factors.
Duncan said if you have children, adding them to your insurance will save you money as well.
“The law mandates that if you have a health insurance company that’s going to pay for any automobile accident, you have to have your children on that auto insurance policy, even if they are 10-year-old,” Duncan said.
These changes will apply to policies issued or renewed after July 1, 2020.
You can find auto insurance resources from the state of Michigan by clicking here.