We’ve all known for a long time that Michigan drivers pay some of the highest auto insurance rates in America. Why? Because of two factors: The state has no-fault laws, and requires unlimited personal injury protection coverage. For those drivers who have poor credit histories or driving records, getting your car insured in our state can be quite costly.

If you are shopping for a new policy this summer, you may be surprised to find it is a whole new ball game in Michigan. As of July 2, 2020, the rules change for insurers and the insured. Now if you have a policy renewing on July 1, you will not get the benefit of the new offerings. So, it is a promising idea to reach out to your insurance agent soon, and learn what is new. Because now you get to choose the level of personal injury protection for your policy. And that can mean considerable savings for you.

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PIP medical coverage pays for health care expenses, and some funeral expenses, and makes up about half of a plan’s premium. WILX Reports “All auto insurance companies doing business in the state must also reduce the cost of each PIP level for at least eight years,” the release said. “The unlimited plan must be lowered by an average of at least 10 percent per vehicle; the $500,000 plan by at least 20 percent, the $250,000 plan by at least 35 percent and the $50,000 plan by at least 45 percent. Those choosing to opt out will not pay a PIP medical premium.”

The Michigan Department of Financial Services has a hotline for more information available 8 a.m.-5 p.m., Monday-Friday, at 833-275-3437. The public can also email autoinsurance@michigan.gov or go to www.michigan.gov/autoinsurance for more information.