Address:
200 Antrim Street
PO Box 318
Charlevoix, Michigan 49720
info@binghaminsurance.net
Toll Free: 800-748-0414
Tel: 231-547-4062
After Hours Claim: 800-937-5793
Fax: 231-547-0655

Michigan Auto Insurance Reform

      KEY DATES   |   PERSONAL INJURY PROTECTION - PIP    |   BODILY INJURY NEW LIMITS   |    MEDICAL FEE SCHEDULE    |    MCCA    |    HIGHLIGHTS

 

 
 
KEY DATES

 

  • July 2020 - Statutorily required Personal Injury Protection (PIP) medical coverage options, PIP average rate reductions, increased Bodily Injury (BI) minimum limit and rating/underwriting limitations take effect. 

  • July 2021 - Statutory medical fee schedule and attendant care hourly limits take effect.

  • July 2028 - Statutorily mandated average PIP rate reduction requirements ends. 

 
PERSONAL PROPERTY PROTECTION - PIP

 

What are your options? 

  • Unlimited* - 10% average premium reduction

  • $500,000* - 20% average premium reduction

  • $250,000* - 35% average premium reduction 

  • $50,000* - 45% average premium reduction 

  • Opt out* - No premium charge

* A personal umbrella policy is highly recommended. Michigan automobile litigation is expected to increase. 

 
 
BODILY INJURY NEW LIMITS
 
  • Minimum Bodily Injury (BI) limit is increased from $20,000 / $40,000 (per person / per accident) to $50,000 / $100,000 (per person / per accident).

  • Default minimum is $250,000 / $500,000 (per person / per accident)*. A election form must be signed to select lower limits. 

 

* A personal umbrella policy is highly recommended. Michigan automobile litigation is expected to increase.

MEDICAL FEE SCHEDULE

 

  • 200 - 250% of Medicare fee schedule, based on statutorily created criteria

  • Statutorily created reimbursement rates for servcies not included in Medicare fee schedule

 
MCCA

 

​2 - MCCA charges will/can apply per vehicle depending on PIP:​

  • MCCA Unlimited 

  • MCCA Deficit/Surplus 

 

HIGHLIGHTS / DEFINITIONS

 

  • Rating Prohibitions - gender, martial status, home ownership, education, occupation, credit score, and postal zone. 

  • Underwriting Limitations - Insures are prohibited from decclining, cancelling, non-renewaing, limiting coverage, charging, reinstatment fees, or increasing premiums to eligible persons solely based on failure to maintain insurance before January 1, 2022. 

  • New "Order of Priortiy" - changes transfer most uninsured occupants and non-occupants (e.g. pedestrians) to the MacP and exclude some non-Michigan residents. 

  • Tort language broadened to allow lawsuits for economic damages in excess of PIP coverage 

  • Family attendant care limited to 56 hours per week. Carriers are permitted to negoiate additional hours.