Wayne County Drivers Save $539 Per Year Following Michigan Insurance Reform

Drivers in Wayne County saved $539 each year on car insurance after Michigan changed its laws in 2019, as per Live Insurance News. That's the biggest decrease statewide.

Over 1.77 million people live in Wayne County. Detroit is part of the county, along with Dearborn, Livonia, Canton, and Grosse Pointe. Michigan's old no-fault rules made drivers buy unlimited personal injury protection. Premiums here were among the priciest in America.

The 2019 changes let drivers pick what they wanted. Unlimited PIP? It's still an option. But now people with health insurance could choose less coverage or skip PIP altogether.

High-cost areas felt the biggest shift. Detroit premiums ran twice the state average before 2019. Then the changes hit. By 2024, residents were keeping $539 more in their pockets each year.

Other counties saw less. Oakland County drivers saved $450 on average. Macomb County residents kept $420, and Washtenaw County saw $380 in reductions.

The new law stopped insurers from using ZIP codes, credit scores, or similar markers when setting rates. It also capped what doctors and hospitals could bill for accident treatment, which brought down catastrophic claim expenses.

More than 40 new car insurance companies jumped into Michigan after the changes passed. CURE Auto Insurance opened a Detroit office in July 2021 and sells directly to customers, setting rates based on how people drive instead of their credit.

Some say the changes hurt accident victims trying to get medical care, as shared by Live Insurance News. Others question what happens to uninsured rates down the road. The biggest drops came after 2019, with the steepest cuts showing up by 2024.