Michigan Auto Reform

Helping you navigate Michigan auto reform.

Home » Michigan Auto Reform

Stay updated on what you can expect and how to prepare.

This page will keep you up to date on what to expect and how to prepare. Please bookmark the page to keep information from Safeco handy. For questions not answered here, please contact your Safeco territory manager.

In May 2019, Michigan lawmakers passed legislation designed to reform the state’s auto insurance market, a historic moment for the state. Overall, Safeco believes these measures will have a positive impact, and will help address the rising costs of insurance in the state and provide greater choice for customers.

Expected changes

The reform legislation will significantly impact numerous parts of the marketplace and will require changes to carriers’ products and processes. Safeco is working diligently to address these changes and is committed to finding solutions that create a seamless transition for you in doing business with Safeco. Here are some of the changes you can expect.

New Personal Injury Protection (PIP) coverage limits:

Prior to reform, Michigan required that all auto insurance policies included unlimited PIP coverage. Beginning July 2, 2020, customers will be able to select their desired PIP coverage level. Of note, certain PIP coverage levels will only be available to eligible customers, based on their personal health insurance coverage and the coverage of relatives residing in the household.

New PIP coverage options:
Coverage Who is eligible?
Unlimited Everyone
500k Everyone
250k Everyone

Only available if: (I) The applicant or named insured is enrolled in Medicaid, and (II) The applicant’s or named insured’s spouse and any relative of either who reside in the same household has “qualified health coverage”, is enrolled in Medicaid, or has coverage for payment of PIP benefits on another policy.


(Full household PIP exclusion)

Only available if: (I) The applicant or named insured has Medicare Parts A & B, and (II) The applicant’s or named insured’s spouse and any relative that resides in the same household have “qualified health coverage” or PIP benefits under another policy.

All PIP limits are per person per occurrence.

“Qualified health coverage” is defined as:

Having other health or accident coverage to which (1) Coverage does not exclude or limit coverage for injuries related to motor vehicle accidents and (2) Annual deductible is <$6,000 per individual, OR Medicare Parts A & B.

PIP limit pricing:

The legislation also mandates specific rate reductions for each PIP coverage level. Reductions are based on PIP rates used by the carrier as of May 2019 and must be inclusive of MCCA fees. Reduced PIP rates must be frozen for eight years.

Coverage Required Rate Reduction
Unlimited 10%
500k 20%
250k 35%
50k 45%
No PIP (Full household PIP exclusion) 100%
Changes to Bodily Injury (BI) limits:

Michigan’s current minimum BI Liability limit is 20/40. After July 2, 2020, BI Liability limits will default to 250/500. However, customers can reduce their coverage down to 50/100 (the new state minimum).

Obtaining a limit below 250/500 will require obtaining a signed form from the policyholder.

Start Quote Request

Lademan Insurance Agency is an independent insurance agency offering a comprehensive suite of insurance solutions to protect you from the unexpected.

Insurance Quote Request

As an independent agency, we offer multiple options at competitive prices.

  • Coverage will not be bound or changed until confirmed by a licensed agent.
  • This field is for validation purposes and should be left unchanged.