Geico isn't providing any online quotes at the moment, whereas AAA is only providing online quotes under current law (you have to call or visit an agent to receive a quote using the new law). I didn't check Allstate or Farmers given their poor reputation. I also didn't check Travelers.
Progressive grants deep - but unstated - discounts for first time customers. Last week, I ran quote via their web site using current law. It was $505 for six months for unlimited medical including attendant care, $500 collision deductible, $500 comprehensive deductible, and bodily injury per person / per accident limits of $100k / $300k, property damage coverage of $100k, and uninsured & underinsured motorist limits of $100k / $300k.
Today, their web site began offering quotes under "new" Michigan law for policies starting on or after July 2. The exact same policy was only $445 for six months.
Because I was interested only in unlimited medical and because Progressive has a bunch of deep discounts for first time customers (applicable to the initial policy term only), I felt it wouldn't be too beneficial for me to see how my premium quote would've changed had I capped my medical at $250k.
So, I went onto State Farm's web site to compare a 6-month policy with unlimited medical (and in all other respects, coverage levels identical to those stated above) to a 6-month policy where medical is capped at $250k.
State Farm's prices were as follows:
- Six month policy with unlimited medical: $946.
- Six month policy with medical capped at $250k: $750.
So, in the above example, the policy with capped medical was 20% less expensive. That is a substantial cost savings!
Also, don't forget that because I'm comparing two post-July 2 policies in the above example, the $946 policy incorporates a $50 MCCA fee whereas the $750 policy incorporates a $0 MCCA fee.
The current MCCA fee is $110 for six months. Thus, under current law, the $946 policy would be at least a $1,006 policy!
So, if we're talking a full year's worth of coverage for a theoretical two car household in my zip code, with cars of similar value to my own, and where the insured persons have an insurance score similar to my own, conceivably, the annual savings could be $1,024 per year!
Those with Medicare or employee sponsored insurance inclusive of medical care coverage for auto accidents have the ability to save even more.
The takeaway here is that the Michigan Auto Insurance Reform law appears to be functioning as intended and will indeed put considerable money back in the pockets of Michigan drivers!
![Smile :)](./images/smilies/icon_smile.gif)
As I've stated before, I am in favor of raising taxes reasonably - not anywhere near $0.45 per gallon - to fund repairs to our roads, especially local & county roads. If we improve our roads and bridges, insurance prices will drop even lower in the long run (and auto repair bills will also go down).