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Did Michigan’s 2019 No-Fault Reform Really Lower Insurance Rates?
Michigan officials continue to claim that the 2019 overhaul of the state’s auto no-fault insurance system lowered car insurance premiums and reduced the number of uninsured drivers. But a recent analysis shows a very different reality — one that strongly impacts drivers in Oakland County, Macomb County, and across Southeast Michigan.
A detailed review published by Michigan Public Radio reveals that the 2019 insurance reform did not lower overall premiums, nor did it reduce the number of uninsured drivers in Michigan.
Source: Michigan Public, “Michigan officials insist 2019 auto no-fault law lowered car insurance rates. It didn’t.”
(https://www.michiganpublic.org/politics-government/2025-12-03/michigan-officials-insist-2019-auto-no-fault-law-lowered-car-insurance-rates-it-didnt)
What Michigan Officials Are Claiming
The Michigan Department of Insurance and Financial Services (DIFS) has promoted a recent report by Milliman, Inc., stating the 2019 no-fault changes lowered costs for drivers. DIFS highlights an alleged $357 annual savings per vehicle. But that number is limited to one piece of the premium — the Personal Injury Protection (PIP) portion — and does not reflect what drivers in Oakland County or Macomb County actually pay today.
The Reality: Auto Insurance Premiums Have Increased Since Reform
The same Milliman report shows:
From 2019 to 2024, the average Michigan auto premium actually increased by nearly $200.
(Michigan Public citation above)Any short-term reductions immediately following the reform were wiped out by later increases.
By 2024, Michigan car insurance premiums reached their highest point in the entire study period.
The number of uninsured drivers in Michigan has not gone down — contradicting state claims.
For residents of Detroit’s northern suburbs, such as Warren, Sterling Heights, Clinton Township, Troy, Rochester Hills, Oak Park, Southfield, and Waterford, these premium increases continue to strain household budgets. These communities historically suffer some of the highest rates in the state due to dense traffic areas, accident rates, and insurance scoring practices.
Impact on Crash Victims in Oakland and Macomb Counties
Perhaps the most alarming finding: thousands of Michigan accident victims now face catastrophic financial consequences because of reduced benefits.
An estimated 3,949 crash victims per year will exhaust their medical coverage under the current system.
(Michigan Public citation)
This is especially significant for clients in Oakland County Circuit Court and Macomb County Circuit Court, where catastrophic injury cases — including traumatic brain injuries, spinal injuries, and long-term attendant care needs — are frequently litigated.
Prior to 2019, Michigan’s lifetime PIP benefits ensured that seriously injured victims received unlimited medical care, rehabilitation, and in-home attendant services. After the reform, many victims’ benefits are capped, slashed, or cut off entirely — forcing individuals and families to fight insurance companies to receive the care they need.
Why Southeast Michigan Drivers Should Pay Attention
Whether you commute along I-75, M-59, I-696, or Gratiot, the 2019 reforms affect your coverage and your rights after a crash.
For Oakland and Macomb County residents:
Choosing lower PIP limits to save money can lead to massive out-of-pocket medical expenses after a serious collision.
Insurance companies are aggressively denying claims based on new cost controls, fee schedules, and coverage caps.
Many people do not realize they selected reduced benefits until after an accident — when it is too late.
This makes it essential to understand your policy and to consult with an auto accident attorney familiar with Michigan no-fault law if you are injured.
Legal Perspective: What This Means for Accident Victims
As a law firm representing clients throughout Oakland County (Pontiac, Southfield, Farmington Hills, Waterford) and Macomb County (Warren, Clinton Township, Sterling Heights, Shelby Township), we see firsthand how these reforms have impacted drivers.
Key takeaways:
The 2019 law shifted significant risk from insurance companies to drivers.
Severely injured individuals may lose access to long-term medical care.
Claims adjusters are more frequently denying or prematurely closing claims.
Lawsuits involving denied PIP benefits, attendant care, and medical reimbursement have dramatically increased in the last several years.
If you suffer injuries in a crash, you may still be entitled to full PIP benefits, wage loss, replacement services, and third-party damages depending on the circumstances.
What You Should Do if You Are Injured in an Auto Accident
To protect your rights:
Review your auto policy — especially your PIP selection.
Seek medical treatment immediately and keep records.
Contact an attorney early, especially if the insurance company delays, minimizes, or denies your claim.
Do not rely on the insurer’s interpretation of the 2019 reform — they are not your advocate.
Accident victims in Michigan face a complicated legal landscape, but you do not have to navigate it alone. Contact our office for a consultation today.
