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Michigan No-Fault Auto Reform

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New Important Decisions for You!

A primary objective of No-Fault Reform was to lower what you pay for Personal Injury Protection (PIP) on your auto policy.  For over four decades we’ve had no choices in to make – we all had Unlimited PIP coverage.  No-Fault Reform has provided five new options that allow us to reduce our PIP coverage or use health insurance plans in place of PIP.  While intended to lower our insurance costs, these new options increase the risk that:

  • Expenses from auto accident injuries won’t be covered by insurance
  • People will turn to the legal system to get their medical bills paid

OUR RECOMMENDATIONS:

    1.  Keep Unlimited PIP
      PIP covers expenses that most health plans usually don’t.  To make a good decision here, you’ll need to compare PIP to your health plan to understand the differences.  For most drivers, there’s no better value for your insurance dollar than Unlimited PIP.
    2.  Talk to your agent about who gets PIP from your auto policy
      Your auto policy doesn’t provide PIP to as many people as it used to.  It’s now limited to named insureds, their spouses, and resident relatives.  You really need to understand how insurance companies decide who is a resident relative and who isn’t!
    3. Purchasing a higher limit of Liability coverage
      If you’re in an auto accident with someone who no longer has Unlimited PIP, they could sue you for their uncovered medical costs.  The odds of being sued are going way up, as will the size of the lawsuits.  Your Liability Coverage protects you from these lawsuits.

Living with No-Fault Auto Reform: Year Two

Year one of Michigan’s No-Fault Auto Reform focused on providing us with choices on our auto policy’s Personal Injury Protection (PIP) coverage. As more drivers select limited PIP coverage instead of (still available) unlimited PIP, the responsibility of paying expenses from auto accident injuries is being shifted to health insurance companies, the government (Medicare and Medicaid), those who aren’t covered by unlimited PIP, and the legal system. As a result, we’re seeing reductions in what we pay to the Michigan Catastrophic Claims Association (MCCA) Fund and some reductions in what we pay for our policy’s PIP coverage.

Year two is about reducing the auto accident medical costs paid by PIP by limiting what medical providers can charge. A common misperception is that PIP coverage is being reduced. The State of Michigan isn’t reducing what’s covered by PIP – they are changing how much medical providers can charge. If something was covered by PIP prior to July 1 2021, it will be covered after.

Check out our “Year Two Auto Reform FAQs.”

Year Two Auto Reform FAQs

No-Fault Auto Reform Webinar

Are you looking for a little bit more information? Larry hosted 2 Webinars to discuss No-Fault Auto Reform in more detail and offer you a chance to ask your questions.  We have uploaded the recordings from both webinars in case you were unable to attend but would still like to hear the information presented.  Larry will help you understand the benefits of keeping your Unlimited coverage, and what you can expect from your insurance company.  Use the links below to watch the recordings.

Watch recording of Webinar from Tuesday, June 23rdNo-Fault Webinar Q & A (both days included)

GET ANSWERS TO YOUR QUESTIONS ON OUR FAQ PAGE:

Auto Reform FAQs

Are you looking for a little bit more detail? Larry explains No-Fault Reform, the benefits of keeping your Unlimited coverage, and what it all means to you.

Watch our No-Fault Videos

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No-Fault Blogs for you to read and share

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Helpful Links

No-Fault Auto Reform Resources for Drivers

Michigan’s New Auto Insurance Law

Helpful Documents

PERSONAL INJURY PROTECTION (PIP) vs. YOUR PERSONAL HEALTH PLAN

Information and Questions you should ask yourself when considering your options.

NO-FAULT OVERVIEW – WHAT YOU NEED TO KNOW

Answers to some of our most common questions.

Let’s stay in touch

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