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Michigan Auto Insurance Reform Update

INTRO to Michigan's Insurance Reform

We know that everyone has questions about the recent passing of insurance reform in Michigan. This is the beginning of what we know will be ongoing explanation of the changes that have been passed, and how they will impact your current and/or future auto policies. We are actively working on getting clarification on these changes so we can share this information with you at a later time. 

Michigan Senate Bill No. 1 and House Bill No. 4397 were passed and put into effect on June 11, 2019. While most of the changes will be effective July of 2020, there are changes that were put into effect immediately. Since these changes may impact how claims are handled for policies currently written with us, we wanted you to be aware of the changes below:


Private Passenger Automobiles

Drivers or occupants of private passenger automobiles and pedestrians are no longer provided Personal Injury Protection (PIP) through our named insured’s policy unless they are:

1. A named insured

2. The named insured's spouse; or

3. A resident relative of either

Instead, if they are a Michigan resident, they will be afforded PIP benefits through the Michigan Assigned Claims Plan (MACP) with a limit of $250,000. This includes drivers, other than spouses, who reside outside of the named insured’s residence.

Commercial Automobiles

The changes described above for Private Passenger Automobiles also apply to drivers or occupants of a commercial vehicle. However, the order of priority for PIP claims did not change if you are one of the following:

1. An employee, their spouse, or a resident relative of either, occupying an employer's vehicle; or 

2. Occupants of some motor vehicles in the business of transporting passengers


There are no immediate changes to the order of priority for PIP claims of a driver or occupants of a motorcycle.

If you have questions about how these changes affect you and your current auto policy, please feel free to reach out to us! We're here to keep you informed during Michigan's insurance reform.

Finlan Insurance Agency, located in Plymouth, MI, has been committed to serving the insurance needs of our friends and neighbors for over a century. It's our mission to bring a refreshingly human approach to our experience, helping you tailor your insurance policy to your unique and individual needs. Insurance is our passion because it protects and serves our customers that we care so much about. Whatever questions you may have about the insurance market or your policy, please don't hesitate to give us a call at (734) 453-6000 – we're always here to help!