New Auto Insurance Law Starts Tomorrow

Michigan’s new auto insurance law is set to take effect 

Changes in the law will apply to policies issued or renewed after July 1, 2020. Starting tomorrow, drivers can choose to keep their current level of PIP coverage, opt-out entirely, or switch to a lower tier of coverage allowed under the new law.

Check out the information below from the Michigan Department of Insurance and Financial Services about what you need to know.

Download a guide to Michigan’s New Auto Insurance Law here.

When does the law take effect?

The current law requires you to have auto insurance that includes unlimited Personal Injury Protection (PIP) medical coverage to pay for your expenses if you are injured in an auto accident. The new auto insurance law allows you to choose a level of medical coverage when your policy is issued or renewed after July 1, 2020.

If you are already receiving payments from your auto insurance policy due to injuries from an auto accident, you will continue to receive the current unlimited benefit regardless of the choice you make for the future. This is also true if you are injured in an accident between now and July 1, 2020.

Will my auto insurance bill be lower when the law goes into effect? 

The new auto insurance law will allow you to choose a level of PIP medical coverage. Insurance companies are required to reduce the premium for this coverage so that there will be an average reduction per vehicle based on the level of coverage chosen.

You will also have the ability to choose different levels of Bodily Injury and Property Damage (BI/PD) coverage. This choice will also affect your premium.

Your total premium and potential savings will depend on the coverages you select. A licensed insurance agent can help you select the right coverage options for your budget.

How will I know what choices I have and what to choose?

The new law requires that auto insurance agents and auto insurance companies give you forms that describe the benefits and risks of the coverage options. DIFS encourages you to shop around for a policy that fits your needs. You may also want to talk with an auto insurance agent to discuss your personal auto insurance needs.


PIP Benefit Coverage Levels

Rate Rollbacks

Rating Factors

File and Approve

Anti-Fraud Unit

Re-entry Penalty


Contact the Michigan Department of Insurance and Financial Services at (877) 999-6442 or visit their website,, for additional information about Michigan’s new no-fault auto insurance law.

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