New Statewide Poll Demonstrates Michigan Drivers Have Been Scammed by Auto Insurance Reform

BRIGHTON, Mich.--(Oct. 10, 2024)--With a new statewide poll showing that Michigan consumers have failed to see any rate relief from the 2019 auto insurance reforms, the Michigan Brain Injury Provider Council (MBIPC) today called on state leaders take action to restore the value of drivers’ insurance benefits while ending the care crisis that has destroyed the lives of thousands of catastrophic crash survivors. 

The Detroit News and WDIV on Thursday released the results of a poll conducted by Glengariff Group which found that 50 percent of drivers have seen their premiums increase since the auto insurance reform law went into effect. Only 13 percent said their premiums had decreased, while 31 percent said they stayed the same. 

MBIPC Executive Director Tom Judd said the results prove that not only are drivers not saving money–they’re also getting less value, because the nearly 50 percent cut for catastrophic care included in the 2019 reforms effectively decimated the state’s post-acute care industry. 

“Crash survivors can’t find anyone who can afford to take care of them,” Judd said. “The businesses that have survived simply can’t accept any new patients, because the new reimbursement level is far less than the cost to render services. Insurance companies are selling junk policies at astronomical prices, and consumers are getting scammed.” 

Meanwhile, the state’s catastrophic care crisis continues unabated–even as state leaders have no plans to advance significant legislative work before the Nov. 5 election. Because of the nearly 50 percent cut in care, patients with severe injuries, like those to the brain and spinal cord, have ended up in hospital ICUs as the ongoing rehabilitative care they’ve relied on to maintain lives of dignity and independence is ripped away. Several have died. Providers, including those in rural areas where care options are already scarce, are being forced to close their doors, leading to layoffs of more than 4,000 frontline health care workers. 

In 2023, the state Senate passed a package of bills that would correct critical flaws stemming from the auto insurance changes signed into law in 2019. However, the bills never gained traction in the state House. 

Judd said that if House Speaker Joe Tate declines to take up the bills, he must work with state leaders to find alternate solutions.

“We call on Speaker Tate to work with Senate Majority Leader Winnie Brinks and Governor Gretchen Whitmer to end the crisis in care through narrow solutions that ensure people have access to the care they paid for,” Judd said. “Reasonable fixes could be implemented that would maintain the cost-cutting elements of the 2019 reform package while restoring necessary benefits for crash survivors and all drivers. We need our leaders to show real political courage and take action now.”