Vehicle insurance rates in Michigan are dropping a whopping 27% from 2019 to last year. That’s enough to move Michigan out of the top spot on the high-to-low list of states for insurance premiums.

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Just about anyone in the state could tell you that for years Michigan has been a high-priced state for vehicle insurance. Think about it. It is taking a 27% drop in rates to move the state off the top of the premiums list. And it’s not that we’re all terrible drivers and have so many accidents that insurers find us all as a group to be high risk.

Rather, the issue has its foundation in mandated coverage with the state’s no-fault insurance system. is reporting that new changes in the no-fault program in Michigan get the credit for most vehicle insurers dropping rates. The main issue is a medical fee provision, which the Insurance Alliance of Michigan claims has been promoting overcharging by medical providers. The Alliance says thanks to the new no-fault changes, Michigan drivers will see more insurance companies offering coverage in the state. That competition will in turn begin to lower premiums even more.

The Michigan Catastrophic Claims Association (MCCA), dropped the yearly per-vehicle fee to be imposed on Michigan drivers by 60% over the past two years.

How Are Michigan Drivers Benefiting From The Changes?

Erin McDonough is Executive Director of the Insurance Alliance of Michigan explained exactly how all Michigan drivers are benefitting from this:

This report from adds to the mounting evidence that no-fault reforms are working and saving Michigan drivers money. There are still plenty of Michiganders who haven’t renewed their auto insurance since the new law took effect, which means Michigan’s rates could be even lower by this time next year.

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