(5/30/19) - Gov. Gretchen Whitmer signed historic auto insurance legislation that guarantees rate decreases for most drivers.

She said it will guarantee of lower rates for every Michigan driver, protect insurance coverage options and strengthen consumer protections.

The legislation limits non-driving factors insurers can use to set rates and sets a fee schedule health care organizations can charge auto insurers. The law also reduces required personal injury protection coverage, which can total about half of a driver's insurance premium.

Michigan drivers now can choose health coverage on their auto at the following levels with savings on the the personal injury protection portion of their bill:

-- 10 percent off for unlimited medical coverage.

-- 20 percent off for $500,000 of medical coverage.

-- 35 percent off for $250,000 of medical coverage.

-- 45 percent off for $50,000 of medical coverage, which will be popular for Medicaid recipients.

-- 100 percent off to opt out of personal injury protection for senior citizens and other health insurance that would cover injuries from motor vehicle crashes.

“By signing this legislation, we are providing relief to millions of drivers across the state and guaranteeing a better auto insurance system for everyone,” Whitmer said. “This historic deal shows that, when we put party aside, we can find common ground on our state’s toughest issues to provide realistic and affordable coverage options for drivers across Michigan.”

The Michigan House and Senate both passed the bill last Friday after weeks of negotiations. House Republicans estimate drivers could save anywhere from $120 to $1,200 a year.

Whitmer signed the bill Thursday morning on the Grand Hotel's Front Porch during the Mackinac Policy Conference on Mackinac Island. The law will take effect next week when it gets filed with the Office of the Great Seal in Lansing.

However, the rollback in personal injury protection rates are scheduled to begin until July 2020. Those rate savings will be guaranteed for the following eight years until 2028.