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Michigan no-fault reform—notable changes and provisions*

Updated: Apr 29, 2020

We know you care about having the right protection for you and your family. We also know the new auto reform law can seem complicated.

As one of Michigan's largest insurance companies, we have the expertise to help guide you through reform. With our clear sight into the changes ahead, we're ready to help you see clearly, too.

As the changes take effect, we'll introduce new tools and resources to help you explore your options and make the selection process fast and easy.

Frequently-asked questions about Michigan auto reform

The new law requires new selections from you. We know there is a lot to consider before choosing the right level of coverage. We have answers to your questions. Need more guidance? We recommend that you work with your independent insurance agent to be sure you have the best combination of protection, value and price.

What is the new Michigan auto insurance law? Senate Bill 1 was signed into law by Michigan Governor Gretchen Whitmer on May 30, 2019, taking effect as of June 11, 2019. The new law is designed to provide more affordable auto insurance in the state by providing drivers with more coverage options. Here is what has changed:

  • Personal injury protection (PIP) options. With the new law, drivers will no longer be required to purchase unlimited no-fault PIP and can instead choose their coverage level. Qualifying drivers may also choose to opt out of PIP coverage.

  • Bodily injury (BI) minimum limits. BI minimum limits will increase from $20,000 per person/$40,000 per accident to $50,000/$100,000, with a default minimum of $250,000 per person/$500,000 per accident.

  • Driver savings. Drivers can save anywhere from 10% to 100% on their PIP coverage, depending on their election and their healthcare coverage.

  • Rating prohibitions. Insurance carriers may no longer factor in gender, marital status, home ownership, education, occupation, credit score and postal zone to premium rates.

Will my auto insurance rates change with Michigan's no-fault reform?

Your savings will depend on your personal injury protection and bodily injury selections. The new law calls for a reduction of PIP premium cost based on the coverage selected, starting at 10 % savings. Additionally, policies with unlimited PIP coverage will see a 55 % reduction in Michigan Catastrophic Claims Association (MCCA) fees, from $220 to $100 per vehicle. This fee will only be charged to those who choose to maintain unlimited PIP coverage, while those who choose lower limits may avoid the fee altogether.

The new law also requires insurance carriers to increase bodily injury minimum limits from $20,000 per person/$40,000 per accident to $50,000/$100,00. BI coverage will default to $250,000/$500,000 under the new law, but consumers may choose lower limits by completing a selection form.

It is important to consider a balance of coverage and price when making a coverage decision.

How much PIP medical do I need?

The new law provides you with six options. The limit you select is what your auto insurance will pay per person, per accident, should you or a resident family member be injured in an accident. If you do not choose a PIP medical coverage limit, the unlimited option will apply by default and your PIP savings will be reduced.

PIP medical options to consider


  • Offers the most protection, but will have the highest premiums


  • Some PIP premium savings and still the highest PIP limit in the country

  • The vast majority of claims are covered by a $500,000 medical limit


  • More PIP savings in exchange for a coverage limit reduction

$50,000 in coverage

  • Named insured must have Medicaid to qualify

  • Some PIP benefits, such as attendant care, van/home modifications, copays and deductibles, may not be covered

No PIP medical coverage for anyone covered on the policy

  • Most savings but no PIP medical coverage

  • Named insured must have Medicare (Parts A and B)

  • Other resident family members must have "qualified health coverage" or another auto insurance policy that covers PIP medical

No PIP medical coverage for excluded insureds, limited $250,000 for non-excluded insureds

  • Greater savings, but more risks than other options

  • Resident family members must have "qualified health coverage" to exclude

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