30795 John R. Road, Madison Heights, MI 48071

Michigan Auto Insurance Reform Law

Answers To Your No-Fault Insurance Reform Questions

We’re here to help! On July 2nd, 2020, Michigan’s new no-fault auto insurance reform law goes into effect and we want to help you understand your options. Questions? Click schedule a virtual appointment and meet a local insurance agent LIVE on your phone, tablet or computer. We can be wherever you are! Call or send us a text message to 248-583-6255 or 248-265-3444.

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What’s Changing?

Under the old law, all Michigan drivers were required to carry unlimited Personal Injury Protection (PIP) coverage on their auto insurance policy. The new Michigan law allows drivers to select their preferred limit of protection when they renew their policy — as long as they meet the eligibility requirements.

When will the changes first impact me?

The new coverage options will apply to your policy when it renews into a term starting on or after 7/2/20. For example, if your policy is effective 12/1/19 – 6/1/20, the new options would not apply during the 6/1/20 – 12/1/20 term, but would apply on the 12/1/20 – 6/1/21 term. If you have questions prior to your policy renewing, please call or text message us at 248-583-6255 or 248-265-3444.

Will I be receiving any documentation explaining my options?

For most auto insurance policy holders, the changes will be available to your policy, and you will receive a packet of information including selection forms that will be required if Bodily Injury limits below 250/500 are desired, as well as for PIP selections. You should see this 90 days prior to your renewal. Proof of qualified health coverage or another policy will also be required if a PIP exclusion is desired.

Which expenses does PIP cover?

Personal Injury Protection (or PIP) is a coverage that includes medical expenses following an accident. Included in those medical expenses are expenses for care, recovery, rehabilitation, attendant care and some funeral expenses. PIP also includes wage loss, survivor benefits and replacement services. Generally, PIP applies to the named insured, as well as their spouse and the named insured’s resident relatives. Prior to the no-fault reform there was no option to apply a maximum limit that could be paid under medical expenses. This was often referred to as unlimited PIP.

What are the options for PIP and the requirements for each?

The options below can be selected on a per-policy basis.
Unlimited PIP Medical coverage
This option allows policyholders to continue to receive unlimited PIP medical coverage similar to what they received prior to July 2, 2020. This will continue to be the default option for all policies in Michigan.
Limited coverage of $500,000 or $250,000
These limits represent the most that your auto policy will pay per person, per accident, for the medical expenses of an injured individual. If the expenses resulting from the claim are greater than the capped amount, additional costs could be paid by a health insurance policy or out of pocket.
Limited coverage of $250,000 with some or all persons excluded from PIP medical
If a named insured has qualified health coverage that is not Medicare, and their spouse or resident relatives has qualified health coverage, they may elect to exclude PIP medical coverage. In this case, any individual who is covered by the policy and not excluded would have up to $250,000 in coverage. Excluded individuals would have no PIP medical coverage. However, any excluded individuals will still receive coverage for wage loss, survivor benefits, and replacement services.
Limited Coverage of $50,000
This option is only available if the named insured or applicant is enrolled in Medicaid, and their spouse, as well as all resident relatives, are either also enrolled in Medicaid, have qualified health coverage or are covered by a different auto policy with PIP medical coverage.
No PIP Medical Coverage
This option is only available if the named insured or applicant is enrolled in Medicare parts A and B, and their spouse, as well as all resident relatives are either also enrolled in Medicare, have qualified health coverage or are covered by a different auto policy with PIP medical coverage. Under this option, no medical coverage is available under PIP.

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What is qualified health coverage?

Included in the no-fault reform are defined characteristics that are required of health policies to be considered a qualified health plan. Specifically, the policy must not exclude or limit coverage for injuries related to motor vehicle accidents, and must not contain an individual deductible greater than $6,000. If an individual is enrolled in federal Medicare parts A and B, their health coverage would be considered qualified.

Are there other changes that I should be aware of?

Bodily Injury liability coverage covers claims made against you for injuries to others if you are at-fault in an auto accident. A default minimum for Bodily Injury is being put into place at a limit of $250,000/$500,000. If you choose, you can continue to select a coverage option as low as $50,000/$100,000, but you will need to complete and submit a form verifying your lower coverage selection. Higher limits also continue to be available.

Michigan Insurance Reform Savings

Get even better auto insurance rates with Michigan’s new reform law! Call our local insurance agents at 248-265-3444 or 248-265-3444 with your questions or use the form below.

Local Auto Insurance Agency Near Me Ratings And Reviews

Trusted, Local & Independent

We are an independent insurance agency located in Madison Heights, Michigan. We are 100% independent, meaning we can shop your insurance with a wide range of insurance carriers, saving you time, aggravation, and money. Give us a call today at 248-583-6255 or 248-265-3444. You'll be glad you did.

Contact Information

Doug Ware Insurance Agency, Inc.
30795 John R. Road
Madison Heights, Michigan 48071

248-583-6255 Main Office
248-265-3444 Call/Text
248-583-6259 Secure Fax

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Please note we are closed Sundays and all holidays; including 1pm—2pm daily for lunch.

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