LASATA: New auto insurance law saving people real money

Published 9:52 am Wednesday, December 2, 2020

The biggest change to auto insurance in our state in generations took effect just months ago. Reforming the formerly outdated auto no-fault law was one of my biggest goals for this term and getting the new law signed was a proud moment of cooperation during an otherwise increasingly divisive period in our state and nation.

The reforms were designed to save drivers money by offering more options to better meet individual needs, while improving coverage and consumer protections.

As a refresher, Michigan law requires most auto insurance policyholders to carry personal injury protection on policies, which covers medical costs if a driver is in an auto accident.

On July 1, for the first time, motorists became able to choose from a selection of new coverage levels to better meet their needs and budgets.

Under the new law, policies that maintain the unlimited PIP option are still required to pay a per vehicle auto no-fault assessment. In about 20 years, this assessment, which is set by the Michigan Catastrophic Claims Association, increased from about $6 per vehicle to $220 by the time we enacted the new law.

But thanks to the savings built in to the new no-fault law, that annual assessment has fallen by 61 percent already and, last week, the MCCA announced the fee will be lowered in the coming year to $86 per vehicle for policyholders with the unlimited PIP option. This is good news, and it is great to see how much of an impact the new no-fault law is making so soon.

As good as it is, there is still more money to be saved. By opting out of the unlimited PIP option and choosing one of the new tiered plans, drivers will not pay the MCCA assessment fee at all. And if you have qualifying health insurance coverage, you may opt out of the medical PIP portion altogether.

It’s great to see how much money people are saving with the new auto insurance law. If you haven’t taken a close look at your policy since July 1, I would encourage you to contact your agent to discuss your options to find the best savings for your individual and family needs.

For more information, check out, send an email to or call (833) ASK-DIFS.