Michigan No-Fault Auto Insurance Reform

Information used to determine what you pay

Michigan no-fault auto insurance reform took effect on July 2, 2020. This page explains what information insurance companies can and cannot use to determine what you pay for auto insurance.

What information can auto insurance carriers use to determine what I pay for auto insurance?

Each state sets its own rules for what information insurance carriers can or can’t use when pricing auto insurance. Things like your driving record, the car you drive and other data about you as an individual help them determine how risky you are to insure. The higher the risk of you filing a claim, the more you’ll have to pay for insurance.

It’s the personal, non-driving factors that drew the most scrutiny from consumer advocates and insurance regulators. Most states allow insurance carriers to consider these personal factors when setting rates because they can show statistics linking each factor to greater risk of claims. However, some states prohibit certain factors they consider to be unfair to use when pricing car insurance. Michigan is now one of those states.

What factors will be banned?

Beginning in July, auto insurance carriers in Michigan can no longer use these factors to determine what you pay:

  • Gender
  • Marital status
  • Occupation
  • Education
  • Zip code
  • Credit score
  • Residential Status

It’s important for you to know that insurance carriers are still allowed to use certain credit information (like your payment history) and “territories” as an alternative to zip codes.

Is there anything I have to do?

There are a few simple things you can do that may impact your rates in a positive way:

  • Maintain your auto insurance coverage. Drivers who build a history of continuous coverage indicate to insurance carriers that they’re responsible, low-risk drivers, which may help them “earn” lower rates. Don’t let your auto insurance lapse for even a day.
  • Pay your bills on time. Insurance carriers will still be able to use information like your payment history as a factor in determining prices
  • Pause before you file a claim. All claims, even claims that are not your fault, can affect your rates. If you need advice, check in with your agent.
  • Drive safely. In general, a good driving record results in lower premiums. On the other hand, a history of accidents or serious traffic violations makes you a higher risk to insure and likely to pay more.


I still have questions. Who can help?

We can! Please reach out to your agent with any questions.

If you have a friend or family member who could also use some help, we’re here for them too. Have them give us a call at 877.381.3570 or let us know so we can get in touch.