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Whitmer: Drivers can expect bigger savings on auto insurance rates; critics say that comes at expense of auto accident survivors

car crash
W. Robert Howell

Governor Gretchen Whitmer announced Tuesday that drivers can expect bigger savings on auto insurance rates over what they paid in the previous year.

That’s under the state’s new insurance law that she signed in 2019. She said the savings on personal injury protection should range from 25 to 62% depending on the level of coverage chosen by drivers.

She also said drivers who’ve allowed coverage to lapse have until January 1 to renew their policies without paying a penalty.

Tom Judd is with the Michigan Brain Injury Provider Council. He agrees the law is responsible for savings for drivers.

“But it’s coming at the expense of people who are right now having their care ripped away from them. They’re losing rehabilitation services and it’s because of another aspect of this law: that’s the access to care based on the reimbursement cap,” he said.

Judd said that rate reduction is at the expense of long term care for people catastrophically injured in car accidents.

“And all the while, they’re holding out hope that the Legislature and the governor will come together and find a viable solution to end this crisis and continue the care and services that these people need.”

The law cut payments to home care providers for accident survivors by nearly half. Long-term care providers are going out of business as a result.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.
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