Michigan Auto Insurance Reform

Come July, auto owners in the Great Lake State will face choices for their car insurance due to major updates to the state's no-fault system. TCU Insurance Agency is here to help Michiganders manage new options.

On July 2, 2020, changes to Michigan's existing no-fault auto insurance law will take effect. TCU Insurance Agency is here to help you understand the new law and what your options are as you prepare to update your policy.

The Michigan Department of Insurance and Financial Services (DIFS) is also offering live, online town hall meetings to explain the changes. Visit the DIFS Auto Insurance website for the schedule of town halls and instructions on how to participate.

Town halls will take place on:

As part of Michigan Auto Insurance Reform, drivers will be able to select their preferred level of Personal Injury Protection Allowable Expenses (PIP AE) — the coverage that pays for medical coverage if you are injured in an auto accident.

When you renew your policy after July 2, 2020, you can keep your unlimited Personal Injury Protection Allowable Expenses (PIP AE) coverage, which is the same coverage you have today. Or, you can also choose a PIP AE option with less than unlimited coverage, including the $250,000 PIP Exclusion6. Regardless of the option you choose, you will want to factor in your own personal risk tolerance and financial situation.

Under Michigan’s no-fault law, those who are injured in auto accidents receive unlimited lifetime medical benefits and significant wage loss benefits. Severely injured persons receive these benefits immediately, rather than having to wait for a settlement to be reached in court, like the traditional tort system in other states. Currently, all drivers are required to carry personal injury protection, property protection and residual liability.

Yet because of the high cost of auto insurance in Michigan, many drivers opt to not carry insurance at all, which places more stress on the system. So lawmakers recently passed reforms to the Michigan no-fault law.

The good news is TCU Insurance Agency can help you find an option that's right for you. Request a free quote at www.tcuinsurance.com or by calling (800) 772-8043.