Consumer Protections

Governor Whitmer signed historic bipartisan auto no-fault legislation to lower costs for Michigan drivers, maintain the highest coverage options in the country, and strengthen consumer protections. The legislation creates a better no-fault system for drivers. These changes apply to policies issued or renewed after July 1, 2020.Young Woman Driving

Increases Consumer Protections:

Elimination of Certain Non-Driving Factors: The new law prohibits auto insurance companies from using sex, marital status, home ownership, credit score, educational level, occupation, and zip codes in setting a driver’s auto insurance rates.

Fraud Investigation Unit: A new unit now investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and law enforcement to prosecute these crimes. Auto insurance fraud drives up premiums for all drivers.

Prior Approval: Auto insurance rates and policies must now be filed with and approved by the Department of Financial and Insurance Services before being offered to consumers.

Fines and Penalties: The new law allows for increased fines on insurance companies, agencies, and licensed agents for certain violations of the law.