Michigan Auto Reform

Are you prepared to make your
Limit selections?

After decades of Michigan insurance laws being untouched, May of 2019 a new no-fault auto insurance reform legislation was passed.

Frequently Asked Questions

What is Auto Reform and when does it go into effect?

  • Taking effect, July 2nd, 2020, Michigan drivers will be given a choice in their level of Personal Injury Protection (PIP) limits. Drivers will be able to choose up to six options, depending on eligibility with their current health care plan. Changes with liability limits will also be affected including increased state minimum limits. Based on what coverages you choose, you may have to sign with your elected options and submit to your insurance provider. These are just some of the important changes coming, for more information, please visit: https://www.michigan.gov/documents/autoinsurance/ip202a_679991_7.pdf https://www.michigan.gov/autoinsurance , or contact us to set up an appointment to discuss further.

How much money will I save?

  • Rates will vary based off of your PIP and liability options you choose. We do not have the ability to let you know of the potential savings or increase as of right now. Please see PIP coverage options below with their estimated savings for that specific portion of your policy.

What is PIP and what are my PIP coverage options?

  • Personal Injury Protection is coverage on an auto policy that pays allowable expenses for medical care, recovery, rehabilitation, wage loss, some funeral expenses, and replacement services if you are injured in an auto accident. Listed below are the six PIP options, effective July 2nd, 2020 and their estimated overall PIP coverage premium reductions.
  1. Unlimited Coverage –10% decrease
  2. $500,000 in coverage- 20% decrease
  3. $250,000 in coverage – 35% decrease
  4. $250,000 with PIP medical exclusion (s) -35% decrease
  5. $50,000 in coverage–Option for Drivers with Medicaid only-45% decrease
  6. PIP medical opt-out –100% decrease

For further information on each option please visit:


What is this form that I’m signing?

  • What it is? – Forms that are required by the State of Michigan to be provided to your insurer that indicates which PIP and liability option you choose.
  • What do I do with it? Review your options, contact your agent with any questions or concerns regarding your choices, choose your bodily injury liability and PIP coverages and submit the form accordingly. This may be sent directly to your insurance carrier or agent, depending on instructions on the form.
  • How often will this be done? As of right now, this will have to be done at every policy renewal for the unforeseeable future. If not completed and submitted, per law, you will automatically default to unlimited PIP and $250,000 per person/$500,000 per occurrence for liability regardless of your previous renewal selection.

Please visit the following link for more information and samples of the forms.


Doesn’t my health insurance cover this?

  • Drivers may need information from their health insurer or employer stating who is covered under their health policy and a statement that their health policy does not exclude or limit auto accident injuries and has an individual deductible of less than $6,000. Read the attached document regarding the most recent bulletin on Medicare and No-Fault Automobile Insurance https://www.michigan.gov/documents/difs/Bulletin_2020-05-INS_680855_7.pdf

What is Order of Priority?

  • What exactly is Order of Priority? This establishes which policy PIP coverages will extend from. This could greatly affect those with drivers on the policy who are not related to the named insured or do not live in the same household as the named insured, amongst other situations.
  • List Order of Priority –Injured person collects PIP benefits in the following order:
    1. Insurer of the Named Insured
    2. Insurer of the Spouse or Resident-Relative
    3. Injured person applies for benefits through the MACP

What Rating Factors have changed?

  • Under the changes to the low, insurer shall not establish or maintain rates for automobile insurance based on: Sex, marital status, home ownership, education, occupation, postal zone and credit score (FICO score).

What is the new state minimum for Bodily Injury/Liability coverage?

What if I’m driving a motorcycle?

  • Motorcycle riders are not entitled to purchase PIP benefits for their motorcycle policy. A motorcyclist would seek PIP coverage from the insurer of a motor vehicle, if one is involved, but would be subject to any PIP choice limits on that policy. If no PIP coverage is available, a motorcyclist is eligible for up to $250,000 in PIP benefits from MACP. However, medical benefits (not PIP) can be purchased to protect yourself on your own motorcycle policy in increments of $5,000 up to limit offered by insurer.


What is MCCA and how is it changing?

The Michigan Catastrophic Claims Association (MCCA) is an association of auto insurers that reimburses member companies for PIP medical costs exceeding an identified amount, currently $580,000. The MCCA has already announced that as a direct result of the new law, it is lowering its per vehicle assessment starting July 2, 2020, which will save Michigan drivers at least $120 per car. Drivers choosing less then unlimited PIP medical will not pay any assessment to the MCCA.

For more information on auto reform and how it relates to your policy give one of our agents a call! 906-228-9292


500 S 3rd St, Marquette, MI 49855