Michigan Auto Insurance Reform: Give It Time Before You Start Seeing Savings

Not seeing any savings following Michigan's Auto Reform? Give it time. It's projected to take 12 to 24 months for companies to perfect their rates and/or change their formula. Learn more from Patrick.

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"Give it time, where there's a lot of people that are saving some money, there's still some people where the costs are actually going up. And with a change of this magnitude, where every single rating factor seems to be a little bit different. And this is a applied or rolled out across every single company, it's going to take time for each and every one of these companies to perfect their rates or to change their formula where the rates are, for most everybody, starting to come down. We're projecting or expecting that over the next 12 to 24 months, as each of these companies sees the sample of quotes that they have, and they can understand if their rates are right or not. What they're going to do is they're going to submit those rate revisions into the state and they're going to request changes and adjustments which should better or help out clients in terms of saving money. So it's a process that's going to take some time, and we do have to be patient with it. But once we get to about a year or so into this, I think we should see some more meaningful changes and where those rate adjustments match what the state's intents were when they rolled this out."