Understanding Michigan’s New Auto Reform Insurance Law

On July 2, 2020, a new no-fault auto insurance law will come into effect allowing Michigan drivers to select their level of Personal Injury Protection (PIP). PIP is the coverage that pays for allowable expenses in the event of an auto accident. This includes medical expenses, lost wages and attendant care to aid with daily living activities. The new law will also provide policy holders with the ability to make modifications to their vehicles as well as their home to assist with injuries related to an auto accident.

Prior to this law, Michigan drivers were required to pay for unlimited PIP coverage. Fortunately, drivers can soon select from lower premium options that reduce their coverage. Providers will no longer be able to consider one’s zip code, credit score, home ownership, education level, marital status, gender, occupation or other non-driving factors when setting insurance rates. The removal of these restrictions will allow some policy holders to receive reduced rates to their premiums.

Below is a list of considerations and next steps to prepare you with options:

  • Review PIP coverage options and timing with your current auto insurance agent or provider.
  • Understand who should be covered on your policy. Non-family members as well as non-resident family members are no longer provided PIP coverage from another person’s policy, with the exception of children in college.
  • Review your health insurance and umbrella policies to understand any coverage you may have outside of your PIP policy.
  • If you have not bundled your insurance policies, inquire how your premiums might be reduced by using a single provider for your home, auto and umbrella policies.

As always, we are here to look out for you, your family and your financial well-being. We are committed to helping you in any way we can.