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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. 

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

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

KEY DATES

PERSONAL PROPERTY PROTECTION - PIP

 

What are your Personal Injury Protection (PIP) options? 

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  • Unlimited* 

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  • $500,000* 

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  • $250,000* 

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  • $50,000* 

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  • Opt out* 

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

    PERSONAL INJURY PROTECTION - PIP
    BODILY INJURY NEW LIMITS
    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).

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

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    * 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

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

    • MEDICAL FEE SCHEDULE

    MCCA

     

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

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  • MCCA Unlimited 

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  • MCCA Deficit/Surplus 

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    MCCA

    HIGHLIGHTS / DEFINITIONS

     

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

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    • 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. 

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

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

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

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    OTHER - HIGHLIGHTS
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