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Consumers’ Guide

Saving $150 for one year does not make Michigan auto insurance affordable

$150 in “premium” savings for one year – as was proposed in House Bill 4612’s unsuccessful No-Fault reform plan in 2013 – does not make Michigan auto insurance affordable.

It would barely make a dent in the auto insurance prices for consumers in Detroit, Novi and Muskegon where they pay $6,456, $2,890 and $2,711, respectively. (“Snyder troubled by Novi’s No. 6 ranking in car insurance rates,” Chad Livengood, The Detroit News, 2/5/2013)

Gov. Snyder focused on those cities in his January 16, 2013, State of the State address, noting “we have three of the top ten most expensive cities for auto insurance. We have Detroit at #1, we have Novi at #6 and we have Muskegon at #9.” (Page 38)

Sen. Virgil Smith, D-4th District, said it best when he told MLive “he’d be ‘laughed out of the room’ if he tried selling the legislation to his constituents on the basis of saving $125 …” (Gov. Snyder promised $125 in premium savings for “year one” at his 4/18/2013 press conference; HB 4612 provides for $150 in premium savings for “year one.”) (“Proposed no-fault auto insurance changes emerge in Michigan legislature,” 4/23/2012, Melissa Anders, MLive)

Under HB 4612’s promised $150 in “premium” savings, rates would have only dropped from $1,073.52 to $923.52 for the one year that savings were guaranteed; Michigan auto insurance rates would still have been higher than the national average ($907.38); Michigan’s auto insurance rates would have been 16th highest in the country – rather than the 8th highest.

Michigan has a new auto No-Fault law. Click Here to learn more.