Michigan Drivers See Major Insurance Rate Decrease from AAA

For years, Michigan drivers have navigated one of the most expensive car insurance landscapes in the nation. The search for affordable coverage is a constant battle, and any relief is welcome news.

Fortunately, in an unlikely event, that relief has arrived for nearly 300,000 policyholders. AAA carrier MemberSelect Insurance Company has lowered its auto insurance premiums, a development that should catch the attention of every driver in the Great Lakes State.

What’s Happening?

MemberSelect Insurance Company, a AAA carrier, is decreasing its rates for Michigan policyholders by an average of 6.5%. This rate reduction is projected to lower the total premium collected from its Michigan customers by over $35 million. It’s set to impact roughly 294,644 policyholders– averaging to a savings of $128 per policy.

Whether you’re a current MemberSelect customer or not, this is the perfect opportunity to take control of your insurance costs and ensure you’re getting the best deal possible.

Shop now and save!

Step 1 of 6

16%

What is your zip code?(Required)

How many vehicles do you have?(Required)

1

2

2+

Do you own or rent?(Required)

Own

Rent

Have you had any driving incidents in the last 3 years?(Required)

Yes

No

Have you been insured for at least the past 45 days?(Required)

Yes

No

Credit Rating(Required)

Excellent

Good

Average

Below Average

Poor

Why Are Michigan’s Auto Insurance Rates So High?

Michigan’s insurance rates are significantly above the national average, at $3,076 for a typical full coverage policy. While this is the result of a complex set of factors, insurance companies ultimately set their prices based on the anticipated cost of paying for future claims.

When their data shows that those future costs are likely to rise, they adjust premiums accordingly. Here are some of the major dynamics driving up costs in Michigan:

• Michigan’s Unique No-Fault System: Historically, Michigan’s no-fault law required drivers to purchase policies with unlimited, lifetime Personal Injury Protection (PIP) benefits. While providing robust coverage, this created immense and unpredictable costs for insurers, which were passed on to consumers. Reforms in 2019 introduced more choice and aimed to lower these costs, but the system remains complex.

• High Repair and Labor Costs: The cost to repair vehicles continues to surge nationwide. With advanced driver-assistance systems (ADAS) featuring cameras, sensors, and complex software, what used to be a simple bumper repair can now run into the thousands. This, combined with rising labor costs, directly impacts the price of collision and comprehensive coverage.

• Medical Cost Inflation: The cost of medical care, from emergency services to long-term rehabilitation, consistently outpaces general inflation. This has a direct and significant impact on the cost of PIP claims, a major factor in Michigan’s insurance pricing.

• Litigation and Fraud: A high-cost environment can sometimes encourage excessive litigation and fraudulent claims, which adds risk and administrative expense for insurers. These costs are ultimately borne by all policyholders in the form of higher premiums.

A rate decrease suggests that an insurer like MemberSelect is seeing positive results from the 2019 reforms, experiencing better-than-expected claims outcomes, or finding internal efficiencies that allow them to pass savings back to their customers— a welcome trend for everyone.

How to Use This News to Save on Your Auto Insurance

If you’re already a MemberSelect customer, you are positioned to benefit directly, but don’t just sit back and wait.

1. Analyze Your Renewal Offer: The -6.5% is an average across the state. Your individual premium change will depend on your specific circumstances, including your driving record, location, and vehicle. When your renewal documents arrive, review them carefully to see your precise savings.

2. Reinvest Your Savings in Better Protection: This is the perfect moment to enhance your policy without increasing your budget. Use the money you’re saving to make your coverage stronger. For example, you may find that you can actually save money by adding endorsements, such as roadside assistance or car rental reimbursement.
3. Double-Check Your Discounts: Even if your policy renews for a lower rate, that still might not be the best price you can get. Make sure that you’re getting all of the discounts you should be, as well as anything you recently started qualifying for. This may include programs for safe drivers, good students, homeowners, multicar policies, lower mileage, and more.

If you are not a MemberSelect customer, you can still benefit from this news.

1. Contact Your Current Insurer: Don’t wait for your renewal. Call your agent or company today. A simple, direct approach is best: “I’m a loyal customer, and I see that MemberSelect is lowering its rates by over 6% in Michigan. I want to make sure I’m getting the best possible price. Can you review my policy for any available savings or discounts?” Even though insurance providers won’t negotiate your rates, they may work with you to figure out what discounts or programs you qualify for.

2. Make Shopping Around Your Top Priority: This rate decrease from MemberSelect may indicate a market shift. The Michigan market is competitive, and loyalty doesn’t always equal savings. Start by getting a quote from AAA’s MemberSelect to take advantage of the recent rate change. Then you can get quotes from a few different carriers to compare your options.

Locking in the Best Deal

Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.