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Michigan Auto Insurance Reform FAQs

Overview

What is Michigan’s auto insurance reform?   Arrow-down

Why is Michigan changing the law?   Arrow-down

When will auto insurance reform happen?   Arrow-down

How will the new law impact my auto insurance policy?   Arrow-down

What can I do to prepare?   Arrow-down

Personal Injury Protection

What is Personal Injury Protection? What are Allowable Expenses?   Arrow-down

What are my Personal Injury Protection Allowable Expenses (PIP AE) coverage options?   Arrow-down

Health Coverage

What does my healthcare have to do with my auto insurance?   Arrow-down

What is Qualified Health Coverage and how does it fit in with auto reform?   Arrow-down

I have Medicare or Medicaid. What PIP options am I eligible for under the new law?  Arrow-down

What risks are associated with new, lower coverage options?  Arrow-down

What questions do I need to ask my health insurance provider?  Arrow-down

What will my auto insurance cover vs. my health insurance?  Arrow-down



Your new PIP coverage options are for Allowable Expenses coverage, a component of PIP (PIP AE), that includes but is not limited to medical expenses. Please note that certain PIP AE options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option.

Please see the No-Fault Act for complete details. Subject to regulatory approval. Discounts and savings opportunities subject to eligibility requirements. Coverage is subject to eligibility terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Insurance underwritten by by Auto Club Insurance Association, Auto Club Group Insurance Company, MemberSelect Insurance Company or non-affiliated insurance companies.

Cost/Premium

What will my savings be when the new auto insurance law takes effect?   Arrow-down

Bodily Injury

What is Bodily Injury (BI) coverage?   Arrow-down

What is the difference between Personal Injury Protection (PIP) coverage and Bodily Injury (BI) coverage?   Arrow-down

Why is $250k/$500k the new state default for Bodily Injury (BI) coverage? Will this affect my premium?   Arrow-down

What do I need to think about when selecting Bodily Injury (BI) coverage?   Arrow-down

What will happen with my Bodily Injury (BI) coverage in 2020?   Arrow-down

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Find out with a free AAA Triple Check® if there are gaps in your auto insurance.

Insurance underwritten by one of the following companies: Auto Club Insurance Association, Auto Club Group Insurance Company, MemberSelect Insurance Company or non-affiliated insurance companies.

1 Source: © 2018 National Association of Insurance Commissioners (NAIC).
Note: Data as of 2016. Total written premium/liability car years. A car year is equal to 365 days of insured coverage for a single vehicle. The NAIC does not rank state average expenditures and does not endorse any conclusion drawn from these data.

2 Source: Insurance Research Council.

3 Please note that certain PIP coverage options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the No-Fault Act for complete details. This summary is being provided for general information purposes only. Subject to regulatory approval. Coverage is subject to eligibility, terms, conditions, exclusions and limitations.

4 Unlimited: Insured may select unlimited PIP AE Coverage with MCCA involvement. This is the coverage required by law in Michigan prior to No-Fault Reform.

5 $250,000 PIP Exclusion: Individuals who qualify for this option will not be charged a PIP premium by their auto insurer. If an individual chooses this option, and they are injured in an automobile accident, their medical benefits will be covered by their Qualified Health Coverage (QHC) provider. Individuals who purchase this option will not be eligible for PIP Allowable Expenses. QHC is health or accident insurance that does not exclude or limit coverage for injuries related to auto accidents and has a deductible of $6,000 or less per person. Insureds who have QHC, or their spouse or resident relative(s) in the same household who have QHC or are enrolled in Medicare Parts A and B are eligible. If not all household residents are eligible, it is still possible to elect this option, with the exclusion applying only to eligible individuals.

6 Allowable Expenses $50,000 – Medicaid Only: Allowable Expenses coverage option for insureds enrolled in Medicaid. A spouse and/or resident relative(s) in the same household must also be enrolled in Medicaid, be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage, or have QHC.

7 Allowable Expenses Opt-out – Medicare Only: In order to choose a $0 limit, insureds must be enrolled in Medicare Parts A and B. However, a spouse and any resident relative(s) in the same household must also be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage, or have QHC. Insureds will be required to provide documentation showing that they, their spouse, and any resident relative(s) are eligible in order to elect this option.

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