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Michigan Auto Insurance Reform


Navigating Michigan Auto Reform (Recording)


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What is Personal Injury Protection (PIP) & What Are My Options?

Residual Bodily Injury Liability Coverage (BI)


What is it?

Effective July 2, 2020 all Michigan auto insurance policies will have new coverage options available.

Currently, all auto policies in Michigan have an unlimited Personal Injury Protection (PIP) medical limit. Additionally, each consumer pays into the Michigan Catastrophic Claims Association (MCCA) which funds the payments for major injuries related to an auto accident.

With the new law, policyholder’s will have multiple levels of PIP medical limits to choose from, depending on their health insurance, ranging from unlimited to opting out completely*.

Bodily Injury and mini-tort limits have also been amended.

*Special requirements must be met in order to opt out of PIP medical completely.

The order of priority – meaning how claims are paid out – has also been altered. The definition of a resident relative is more important than ever. If you have someone living in your household that is not a relative or you have a relative who does not live in your household but is currently covered by your auto insurance, please contact us to discuss potential gaps in coverage.

Other items, such as rating factors, fees and penalties as well as increased fraud investigation will be implemented.

For more inquiries on the specific law details, please visit www.michigan.gov/autoinsurance.


What’s the difference between PIP medical and health insurance?

Some of the new PIP medical limit options are only available if you have Qualified Health Coverage (QHC). It’s important to confirm with your health insurance carrier if your current coverage is considered as QHC as it pertains to auto reform.

It’s also important to point out that PIP medical covers additional expenses that your health insurance does not such as: rehabilitation, attendant care or new home/vehicle modifications.

Keep in mind that, unlike auto insurance, health insurance stops paying when the policy ends or is canceled.


How much money will I save?

While we’ll all see some savings from the MCCA reduction of $224 per vehicle to $100 per vehicle, the total savings will depend on insurance company rates, the limits of liability selected and each individual’s unique situation.

While savings are important to everyone, our main priority is to make sure you, your family, and your future are properly covered in the event of a loss.


When can I do this?

All changes are effective July 2, 2020. No matter what date your current auto insurance policy renews, you’ll be able to make these selections on or after July 2; however you are able to wait to make any changes until your next renewal date.


What do I need to do?

Renewal packets will be mailed to you at least 50 days before your policy renews. If you do not wish to make immediate changes in July, you can wait until you receive this information closer to your renewal date. If you wish to review these options earlier than your renewal, please contact one of our team members after July 2.


More questions?

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Additional Auto Insurance Reform Resources:

Auto-Owners: https://www.auto-owners.com/mi-no-fault-insurance-reform

Department of Insurance and Financial Services: https://www.michigan.gov/autoinsurance

Frankenmuth Insurance: https://www.fmins.com/personal/auto-coverage/michigan-no-fault/

Hanover/Citizens Insurance: https://www.hanover.com/autoreform/

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