Viewpoint: Insurance companies are making Michigan drivers pay for savings

Why are people’s car insurance premiums jumping significantly now at renewal?

The answer is that Michigan’s insurance companies are hiking your car insurance premiums now so they can keep profits high in the future. Auto insurers must provide Michigan drivers with mandatory premium savings after July 1, 2020, under Michigan’s new auto no-fault law.

The premium increases being imposed now will allow insurance companies to still keep profits even after the savings provisions take effect.

Whether you agree or disagree with the provisions of Michigan’s new auto no-fault law, the promise of providing beleaguered drivers with “significant savings” was at the very heart of it. The insurance companies are raising your premiums now before the required savings takes effect. They are making drivers pay now for the savings that these same insurers are supposed to be providing to drivers in the future.