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Michigan No-Fault Reform

On May 30, 2019, Michigan Gov. Gretchen Whitmer signed into law a bill that brings sweeping changes to the state’s no-fault auto insurance laws.  Personal Injury Protection (PIP) coverage represents one of the major provisions enacted. The no-fault coverage in Michigan is unique in that PIP provides for unlimited medical benefits for the lifetime of the injured person when those injuries result from an auto accident.

What has changed?

Under the old law, Michigan drivers were required to carry unlimited PIP coverage on their auto insurance policy. PIP coverage includes medical expenses following an automobile accident including; care, recovery, rehabilitation, attendant care, funeral expenses, wage loss, survivor benefits and replacement services. No limits were applied to payments for expenses, i.e. unlimited PIP. Under the new law, drivers can to select their level of coverage, from unlimited (as provided under existing law) to varying lower levels of protection.

This change in PIP coverage will need to be selected on any policy renewals from 7/2/2020 onward. 

What are you required to do?

You will need to decide if you are opting out of unlimited PIP coverage and what your new level of coverage will be. Before you select your coverage, you will need to understand if your health care plan will cover auto accident injuries and what  potential exposures there will be if you do not have unlimited PIP.  Your selection should ensure you are covered for all care, recovery, rehabilitation, attendant care, and other out-of-pocket expenses in the event of an auto accident injury. If your health care plan covers auto injuries, you may be required to send your auto carrier a letter confirming your coverage. You may have already received information from your auto carrier about your renewal and necessary documentation you may need.

What are your PIP coverage options?


PIP Reform Summary

For a comprehensive list of Frequently Asked Questions (FAQs) view Michigan No-Fault Reform Summary

Need Answers?

Reach out to us if you want to better understand your exposures and liabilities before you opt out of unlimited PIP coverage. Contact Shinberg-LTB Insurance.

Useful Links

Michigan.Gov-Understanding the New Auto Insurance Law

Michigan Catastrophic Claims Association-Learn about MCCA Reduced Fees