Michigan Auto Insurance Reform

Starting July 2, auto owners in the Great Lake State now face choices for their car insurance due to major updates to Michigan's no-fault system. TCU Insurance Agency is here to help you manage new options.

On July 2, 2020, changes to Michigan's existing no-fault auto insurance law took 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, or watch a recorded town hall event here.

As part of Michigan Auto Insurance Reform, drivers are now 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 renewing 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 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 former no-fault law, those who were injured in auto accidents received unlimited lifetime medical benefits and some wage loss benefits. Due to the high cost of auto insurance in Michigan, many drivers opted to not carry insurance at all, which placed more stress on the system. So, lawmakers 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.