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Will auto no-fault changes bring down insurance costs? Depends on who you are.

two cars in a rear ending accident
Steve Carmody
Michigan Radio
Opps. A fender bender in Ann Arbor. Michiganders spend a lot for auto insurance.

The new auto insurance law signed by Governor Gretchen Whitmer is leaving many questions about what will happen to the cost of insurance.

Lawmakers in the state House and Senate approved an amendment to the law on Tuesday to fix what they say would’ve caused a temporary spike in insurance costs.


Eric Lupher is the president of the Citizens Research Council of Michigan. He says the Legislature moved so quickly on the changes to the law that insurance companies are still trying to understand the ramifications.



“You know, that's the price you pay for doing something so quick,” Lupher said on Stateside on Wednesday. “Government is meant to work slowly, to have eyes on proposals, and get input and see how different people are affected and I don't think anybody is served under any circumstance when things are rushed through.”

When asked whether the changes will make a substantial difference in the cost of insurance, Lupher said maybe. He notes that was the intent of the changes to the law. The new law bans insurers from using a whole range of non-driving factors in setting rates: gender, education level, marital status, whether or not you own a home, your occupation, credit scores, and zip codes. Lupher says if you were benefiting from those non-driving factors, you might not save money. But if you were negatively affected by those ways of setting rates, he says you should save money.

“Some are going to win and some are going to lose, but we just don't know yet; it’s so new,” he said. “It’s going to take a while for the dust to settle so we can figure out where we are and where we’re going.”

You can hear the full interview with Eric Lupher above.

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