At My Member Insurance Agency (MMIA) we serve you!
We are prepared to assist you with the new Michigan Auto Reform changes and requirements. Use the toggles below to answer your most frequently asked questions about Michigan’s Auto Insurance Reform Bill.
We urge you to:
- Call us prior to your next auto policy renewal. As your trusted agent, we are prepared to help and assist you with important information.
- We need to ensure we have your current contact information.
- Go online to your specific Insurance Company website to register your policy and set-up your log-in account and e-mail. This will allow you access to important information specific to your Insurance Company and their procedures with the new auto reform law. In addition you can see optional coverage limits, information, required forms, allow you to register your e-mail for paperless signatures and returning the forms.
- We urge you to consider an excess liability policy (Personal Umbrella).
The following is intended for informational purposes only. This is not a coverage statement. All Insurance Policy declarations supersede any statements below. We urge you to contact your agent for more information and details relating to your specific household.
Michigan Auto Reform
When Does the Law Take Effect?The current law requires you to have auto insurance that includes unlimited Personal Injury Protection (PIP) medical coverage to pay for your expenses if you are injured in an auto accident.
The new auto insurance law allows you to choose a level of medical coverage when your policy is issued or renewed after July 1, 2020. If you are already receiving payments from your auto insurance policy due to injuries from an auto accident, you will continue to receive the current unlimited benefit regardless of the choice you make for the future. This is also true if you are injured in an accident between now and July 1, 2020.
Will My Auto Insurance Bill Be Lower When the Law Goes Into Effect?
The new auto insurance law will allow you to choose a level of PIP medical coverage. Insurance companies are required to reduce the premium for this coverage so that there will be an average reduction per vehicle based on the level of coverage chosen.
You will also have the ability to choose different levels of Bodily Injury and Property Damage (BI/PD) coverage. This choice will also affect your premium.
Your total premium and potential savings will depend on the coverages you select.
How Will I Know What Choices I Have and What to Choose?The new law requires that auto insurance Companies give you forms that describe the benefits and risks of the coverage options. You will receive a renewal packet from your insurance Company several weeks prior to your auto policy renewal (for renewals beginning July 2). This packet will provide information and coverage selection options, as well as the required State mandated forms which need to be signed and returned to your insurance Company.
If you do not return any forms selecting your desired coverage limits for medical (PIP) and BI (Bodily Injury), your insurance policy will renew with unlimited medical allowable expenses and Bodily Injury limits of $250,000 / $500,000.For more information, call or email us.
Medical Coverage Options
You will be able to choose the level of medical coverage under the Personal Injury Protection (PIP) portion of an auto insurance policy. Below are the PIP medical coverage levels available to you (also known as “allowable expenses”):
Unlimited coverage per person per accident
• Up to $500,000 in coverage per person per accident
• Up to $250,000 in coverage per person per accident
• Up to $250,000 in coverage per person per accident with exclusions (under certain conditions)
• Up to $50,000 in coverage per person per accident (under certain conditions)**
PIP opt-out (under certain conditions)***Note: A signed selection form sent to the Insurance Company is required when selecting a PIP limit. If no signed form is received; you will be defaulted to an unlimited allowable expenses (Medical) PIP coverage option.**Named insured must be Medicaid enrolled. Others in household must maintain a qualified health care plan.***PIP opt-out: Named insured must have a qualified health care plan which does not exclude or limit coverage for auto accident related injuries and must not contain a deductible higher than $6,000. It can include Medicare parts A and B for named insured. Others in household must maintain a qualified health care plan. Medicaid is not a qualified health care plan.If you select other than “unlimited medical”, Excess Attendant Care Coverage can be purchased (which increases the dollar limit available for Excess Attendant Care Coverage and is in excess over allowable expenses (Medical PIP).
What is Qualified Health Coverage?
Qualified Health Coverage is defined as:
• Medicare Parts A & B; or
• Other Health or accident coverage that does not exclude or limit coverage for injuries related to an auto accident AND has an annual deductible of $6,000 or less per individual. It is not the agents responsibility to certify qualified heath coverage. It is your responsibility as the named insured to provide to the Insurance Company a document that provides the qualified health coverage stating the names of all the persons covered under the plan.
Bodily Injury and Property Damage (BI/PD) Liability LevelsThe law limits the damages that can be claimed against you as the result of an automobile accident, except in certain situations. This portion of your automobile insurance policy will pay up to your coverage limit amounts if you are found legally responsible for damages in these situations.
The new increased default BI/PD coverage limits are:
• Up to $250,000 for a person who is hurt or killed in an accident.
• Up to $500,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state.
You have the option of purchasing other BI/PD coverage limits. However, the lowest limit you may purchase is:
• Up to $50,000 for a person who is hurt or killed in an accident.
• Up to $100,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state.
**If you choose a BI/PD limit below $250,000/$500,000; you will be required to submit a signed form to your insurance Company. If no signed form is received, you will be defaulted to a limit of $250,000/$500,000.
Tort Liability (Mini-tort) is increasing from $1,000 up to $3,000.
There are changes in the order of priority for PIP medical payments; including pedestrians and motorcycles. This is very important if you own or ride a motorcycle – please contact your agent.
Form changes have removed “non-family members” and “non-residents” from the definition of who is an “insured” under your policy. The new definition of “insured” includes Named Insured, Named Insureds spouse and Resident Family members. Resident Family member means a person related to you by blood, marriage or adoption who physically resides in your household.
Insurance Company contact on-line information
Carrier Contact Info
Many of the Companies have mobile apps and a dedicated auto reform section on their website.
We urge you to register with your specific insurance company on-line. This will provide you access to important information as well as the ability to complete and submit auto forms on-line or with e-mail.
You can create a user-id and password (you will need your auto policy number)
Michigan Department of Insurance and Financial Services (DIFS)
DIFS Contact Info
Hours of Operation Monday – Friday 8:00 AM – 5:00 PM (EST) Phone Number 877-999-6442 (Toll-Free) or 517-284-8800 Fax Number 517-284-8837 DIFS General Mailing Address DIFS PO
Lansing, MI 48909-7720
DIFS Physical Address 530 West Allegan St.
Lansing, MI 48909
Auto Insurance Questions AutoInsurance@michigan.gov
At My Member Insurance Agency, we serve you!