LANSING, Mich. — Legislation to lower Michigan car insurance rates was signed into law, Thursday by Gov. Gretchen Whitmer.

Michigan has the highest car insurance rates in the nation. This is largely because of a mandate which requires car insurance providers to also cover 100 percent of medical costs for injuries caused by car accidents.

The no-fault reform bill was first introduced Jan. 15 by State Sen. Aric Nesbitt, R-Porter Township and will offer Michigan drivers more options which will lower their car insurance rates. It offers more choices on personal injury plan (PIP) coverage, cobat fraudulent claims and stop price gauging on medical services fpr car accident victims, according to a press release from Rep. Beau LaFave, R-Iron Mountain.

With the new car insurance law, Michigan drivers be able to opt out of the PIP, which contributes to high insurance costs. Anyone with Medicaid, Medicare, or a health insurance that covers injuries from car accident-related injuries will be eligible to opt out of PIP.

LaFave said it is unlikely this legislation would affect health insurance coverage, because most health insurance plans already cover injuries from car injuries.

He said on average, a household could save between $500 and $1,000 a year on car insurance once this new law takes affect.

The bill will take effect July 1, 2020.