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Michigan No-Fault Auto Insurance Reform Readiness Guide

Auto insurance is changing and you've got choices to make. At AAA, we're here to help.

Start with this checklist

We've created a list of steps you can take to prepare before auto reform goes into effect on July 2, 2020.

Your Michigan Auto Insurance Reform Checklist

Peace of mind? Cost and Protection? Just Cost?

Understanding your options and other things to consider when choosing your coverage.

One of the goals of auto reform is to make auto insurance more affordable for all drivers.

Under the new law, you will be able to choose from different levels of Personal Injury Protection Allowable Expenses coverage. Depending on which coverage option you choose, You may be able to lower your auto insurance costs as shown here.

PIP options* for everyone:

  • Unlimited - 10% average PIP savings (this is your current level of PIP coverage).
  • $500,00 limit - 20% average PIP savings.
  • $250,000 limit - 35% average PIP savings.

PIP options* available to eligible individuals with qualified health coverage, medicaid or medicare:

  • $250,000 limit with PIP exclusion - 100% average PIP savings.
  • $50,000 limit, Medicaid only - 45% average PIP savings.
  • Allowable Expenses Opt-out, Medicare only - Up to 100% average PIP savings.

What is qualified health coverage?

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.

Our online reform options planner can help provide information about the PIP options* so you can make selections that best fit your needs, budget and situation.

There's never been a better time to call on your AAA agent for help.

Helping you find the best value - and great coverage - is important.

No matter what company you have your auto insurance with today, things may be different going forward. Your policy may be changing to comply with new auto reform mandates. Changing you auto insurance company may be in your future, too.

Great Rates and Discounts. Great Service. Real Savings.

Depending on the new coverage options you select, you could also save with these benefits and discounts*:

  • AAA Membership Discount
  • Multiple-Car Discount
  • Home and Auto Discount
  • Choice of Plans
  • Options to Customize Your Coverage
  • AAA Accident Assist®
  • 2/7 Toll-Free Claims Hotline
  • Extensive Repair Network
  • And much more!

Ready to Take the Next Step?

Schedule a Call

Get a Coverage Review

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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