In May 2019, Michigan’s House of Representatives and Senate passed a law to fundamentally alter Michigan’s no-fault auto insurance law. Michigan has the highest auto insurance premiums in the country and has for the past 6 years. Due to public outcry, this deal was reached with bi-partisan support and will help save drivers significant amounts of money going forward.

One major change to the law is that drivers will no longer be required to have Michigan personal injury protection (PIP) benefits. PIP covered all medical payments and had no limit. This unlimited benefit was a major contributor to the high premiums, in some cases making up over 50% of the premiums cost. Unlimited medical benefits can still be retained, but will cost more now that the pool of people paying for it will shrink. Also, this unlimited benefit used to be paid by all citizens and was scheduled to go up to $220 in July, but could now be as low as $43 for those who choose to opt out of PIP coverage. 

Another major change in the law is insurance companies can no longer use certain non-driving factors to set rates. This means sex, marital status, ZIP codes, credit scores, home ownership, education level, and occupation no longer factor into insurance companies risk assessment process.

Michiganders interested in the new changes are encouraged to research their new rates and reassess their auto insurance once these changes go into effect in July of 2020.