⚖ MICHIGAN AUTO REFORM

Auto Reform

Insurance Education

(231) 264-6161

Michigan Auto Reform

On July 2nd, a new law goes into effect changing Michigan’s current No Fault Insurance system.

The new law makes major changes and requirements to your Auto Insurance. Information can

be found below and on the State’s website: https://www.michigan.gov/autoinsurance/

Overview of Changes

The MCCA Fee is dropping from the current assessment of $220 to $100 per vehicle, meaning

you will pay less per vehicle with a standard registration.

State Minimums for Bodily Injury are changing – Carrying less than $250,000/$500,000 will require you to sign a selection form acknowledging your lower coverage
You will now have options regarding the amount of Personal Injury Protection coverage
You will still be able to select the current Unlimited Coverage or lower protection of $500,000, $250,000, $50,000 for Medicaid recipients, $0 if you have a Qualified Health Coverage
Coverages are changing, including additional exposures and how you are protected

How Can You Protect Yourself?

Fischer Insurance recommends at least: $500,000 limit for Bodily Injury Liability insurance; Unlimited Personal Injury Protection (PIP); An Umbrella Insurance policy of $1 million or greater.

Bodily Injury Liability – Pays for medical injuries of others, should you be deemed at fault
Personal Injury Protection – This is medical coverage for you, your spouse, and resident relatives
Umbrella Insurance – Deepens and broadens your coverage, providing additional protections

Important Considerations

Who is Using Your Car – Personal Injury Protection is now only providing coverage for a named insured, the named insured’s spouse, or resident relative of either. If someone different is using your car on a regular basis, please contact us.
Vehicle Titles – It is important that the insurance policy match the title of your vehicle. If this is not the case for you, please contact us to discuss your options.
Dependents – If you have a dependent who is using a different address or has moved away with no intent to return to your residence, they will need their own insurance policy. Please contact us to discuss the options for their own coverage.

FAQs

How do I know if I have a Qualified Health Coverage?

You will need to contact your Health Insurance Company for confirmation of coverage.
I am on Medicaid. Should I select $50,000 PIP coverage?

Only if any spouse or resident relative has Qualified Health Coverage; Otherwise, the recommendation is the Unlimited PIP benefit.
Does Medicare allow me to opt-out of PIP coverage?

Only if you have Parts A and B, and any spouse or resident relative has Qualified Health Coverage; otherwise, the recommendation is the Unlimited PIP benefit.