Michigan No-Fault Auto Insurance Reform

Frequently Asked Questions
What is Michigan no-fault insurance reform?
No fault auto insurance reform is a series of changes to Michigan law that affects all auto insurance policyholders — in other words, everyone who has insurance on a vehicle — and anyone injured in an auto accident. Instead of requiring lifetime unlimited coverage, the law requires insurance carriers to provide medical coverage amount options. It also increases minimum liability requirements.
When does it take effect?
The bill was signed into law in May 2019 and most of the law takes effect on July 2, 2020. If you buy a new policy on or after that date the new rules will apply to you. If you already have a policy you won’t have to change until your policy renews. However, some insurance companies may offer the opportunity to make the change earlier.
What do I have to do?
There are forms you’ll need to review and sign whether you want to make changes to your insurance coverages or not. Your insurance carrier will send those forms to you. If you need help filling out the forms, contact your Keyser agent. That’s why we’re here.*

You should also contact your Keyser agent if:

  • You have drivers on your policy who don’t live with you
  • Your employment status changes
  • Your medical insurance coverage changes.

* Now more than ever it’s especially important to read the mail and emails you receive from your insurance carriers, and to complete the tasks they ask you to complete. Not doing so could result in changes that impact your rates. 

How will my coverage change?
Before, you were required to take unlimited medical coverage to pay for your expenses if you were in a car accident. Now you can choose your amount of coverage. Your insurance carrier will provide a list of available coverage amounts. It can be confusing, so please don’t hesitate to connect with your Keyser agent if you want or need advice.
Will I save money?
Maybe. Maybe not. It all depends on the amount of coverage you choose and other factors. We can help you explore your options.
What else has changed?
Among other things, your Personal Injury Protection — a.k.a. PIP — coverage now applies to the policy owner, their spouse and resident relatives, which is just a fancy way of saying children who live at home. Others who were previously covered (i.e. children who don’t live at home anymore) now need to have separate coverage.
Are there drawbacks to Michigan no-fault auto insurance reform?
The cost of liability may increase. If you do get in an accident and you have to pay for medical care, you may have to cover the costs your insurance company doesn’t. Some people might have to get their own policies.
What will Keyser do for me?
We’ll keep you updated with general information and resources and are happy to provide one-on-one consultation and advice. We’re here to take care of you. It’s what we love to do.
What if I have more questions?
That’s completely understandable. You may not even know what those questions are — just that you have them! We got you. Connect with your Keyser agent and ask about Michigan no-fault auto insurance reform.