Michigan Insurance Reform Law

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Your go-to resource for information on the new Michigan Insurance Reform Law.

The new Michigan Insurance Reform Law affects you, and we’re here to help you understand how it affects you and what, if anything, you need to do.

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This guide is a great comparison of Auto NO-FAULT Lifetime/Unlimited PIP Coverage differences between Auto Insurance, Traditional Medicare, and Medicaid.

What you need to know now

When Does the Law Take Effect?

The current law requires you to have auto insurance that includes unlimited Personal Injury Protection (PIP) medical coverage to pay for your expenses if you are injured in an auto accident. The new auto insurance law allows you to choose a level of medical coverage when your policy is issued or renewed after July 1, 2020. If you are already receiving payments from your auto insurance policy due to injuries from an auto accident, you will continue to receive the current unlimited benefit regardless of the choice you make for the future. This is also true if you are injured in an accident between now and July 1, 2020.

Will My Auto Insurance Bill Be Lower When the Law Goes Into Effect?

The new auto insurance law will allow you to choose a level of PIP medical coverage. Insurance companies are required to reduce the premium for this coverage so that there will be an average reduction per vehicle based on the level of coverage chosen.
You will also have the ability to choose different levels of Bodily Injury and Property Damage (BI/PD) coverage. This choice will also affect your premium.
Your total premium and potential savings will depend on the coverages you select. A licensed insurance agent can help you select the right coverage options for your budget.

How Will I Know What Choices I Have and What to Choose?

The new law requires that auto insurance agents and auto insurance companies give you forms that describe the benefits and risks of the coverage options. You may also want to talk with an auto insurance agent to discuss your personal auto insurance needs.

Download Our Comparison Guide!

This guide is a great comparison of Auto NO-FAULT Lifetime/Unlimited PIP Coverage differences between Auto Insurance, Traditional Medicare, and Medicaid.

What choices you have

The new law requires that auto insurance companies or licensed agents give you forms that describe the benefits and risks of the coverage options. You may want to consult your auto insurance company or licensed agent to discuss your personal auto insurance needs.

Medical Coverage Options

You will be able to choose the level of medical coverage under the Personal Injury Protection (PIP) portion of an auto insurance policy. Below are the PIP medical coverage levels available to you:

  • Unlimited coverage per person per accident
  • Up to $500,000 in coverage per person per accident
  • Up to $250,000 in coverage per person per accident
  • Up to $250,000 in coverage per person per accident with exclusions (under certain conditions)
  • Up to $50,000 in coverage per person per accident (under certain conditions)
  • PIP opt-out (under certain conditions)

You may wish to discuss your PIP options with your licensed insurance agent.

Increased Bodily Injury and Property Damage (BI/PD) Levels

The law limits the damages that can be claimed against you as the result of an automobile accident, except in certain situations. This portion of your automobile insurance policy will pay up to your coverage limit amounts if you are found legally responsible for damages in these situations.

The new default BI/PD coverage limits are:

  • Up to $250,000 for a person who is hurt or killed in an accident.
  • Up to $500,000 for each accident if several people are hurt or killed.
  • Up to $10,000 for property damage in another state.

You may have the option of purchasing other BI/PD coverage limits.

However, the lowest limit you may purchase is:

  • Up to $50,000 for a person who is hurt or killed in an accident.
  • Up to $100,000 for each accident if several people are hurt or killed.
  • Up to $10,000 for property damage in another state.
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