Michigan’s auto insurance reform law allows drivers to opt out of buying unlimited personal injury protection (PIP), but they need higher liability limits. Michigan’s auto insurance reform law changed the state’s car insurance requirements for policies issued or renewed after July 2020. Michigan’s insurance reform also decreased the Michigan Catastrophic Claims Association (MCCA) fee, which drivers must pay if they purchase unlimited PIP insurance.
Michigan Auto Insurance Reforms After July 2020
Drivers need $250,000 in personal injury protection per person, with lower limits or exclusions allowed for drivers with Medicare, Medicaid, or qualified health care.
Insurers must offer an optional supplement to PIP insurance that covers attendant care, such as home nursing.
Insurers must offer $3,000 in limited property damage liability insurance, which applies if you are 50% or more at fault in an accident and the other driver sues you for vehicle damage.
Michigan has some of the most expensive car insurance premiums in the country, as well as high fraud rates. To combat this, Michigan’s auto insurance reform law implemented several new consumer protections.
Consumer Protections Created by Michigan’s Auto Insurance Reform Law
Insurance companies can no longer consider gender, home ownership, marital status, credit score, educational level, occupation, and ZIP code when determining rates.
Drivers cannot be penalized for a lapse in auto insurance coverage as long as they apply for insurance by January 1, 2022.
Michigan insurers must reduce PIP premiums, and all premiums need to be approved by the Department of Insurance and Financial Services.
A new fraud investigation unit was formed.
Fees and penalties for insurance companies who violate laws increased.
You can get car insurance discounts in Michigan based on how you drive, the car you own, and your relationship with your insurance company. Michigan insurers are not allowed to consider factors like gender, credit score, educational level, occupation, home ownership, ZIP code and marital status when setting premiums.
Almost anyone can get a discount on car insurance in Michigan because most insurance companies make it easy to qualify for a variety of savings. Michigan insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.… read full answer
Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most Michigan drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to Michigan residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.
Car Insurance Discounts in Michigan
How It Works
Insurance companies reward long-term customers with lower rates.
Up to 10%
Drivers with a clean record and no claims history save on insurance.
10% to 30%
Older drivers who refresh their skills with an approved defensive driving course get reduced rates.
5% to 10%
Billing and Payments
If you pay for your policy in full, set up automatic payments, pay online, or go paperless, you can save.
2% to 25%
Insure multiple vehicles or get different policy types (like home and auto) from the same company can earn a discount.
1% to 12%
Young drivers with a “B” average or higher are eligible for discounts.
5% to 20%
Some insurance companies offer discounts for drivers who are willing to have their driving habits monitored by an electronic device attached to your car and/or your smartphone.
1% to 30%
Cars featuring multiple airbags, anti-lock brakes, daytime running lights, and other safety add-ons can save on car insurance.
2% to 30%
Car alarms, LoJack, steering wheel locks, or other anti-theft features can make comprehensive coverage more affordable.
5% to 25%
Drivers who have been insured for 6 months or more save on insurance (beginning in 2022).
5% to 25%
Remember, discounts vary among different insurance companies, so it’s always best to contact the provider directly to determine which discounts you qualify for.
An SR-22 in Michigan is a certificate proving that a high-risk driver has the legal requirements for car insurance in Michigan. So-called SR-22 insurance raises annual car insurance premiums by roughly $100 in Michigan, compared to standard rates. In addition, there’s usually a fee of $15 to $25 for your insurance company to file your SR-22 documentation with the state. … read full answer
Your SR-22 must be maintained with Michigan’s licensing agency for 3 years, according to Michigan law. If your insurance coverage lapses during that time, your insurance company is required to report you to the state. Your SR-22 period resets in that case, and you are required to pay any SR-22-related fees again.
What You Need to Know About SR-22 Insurance in Michigan:
Who Needs SR-22 Insurance in Michigan? Michigan requires SR-22 documentation for drivers who are convicted of serious traffic violations. The list includes reckless driving, hit and run, and DUI, among other major offenses.
What is Minimum SR-22 Car Insurance Coverage in Michigan: Drivers need at least $50,000 in bodily injury liability insurance per person ($100,000 per accident) plus $10,000 in property damage liability insurance. Drivers also need at least $250,000 in personal injury protection coverage (with some exceptions for drivers with Medicaid or Medicare) as well as $1,000,000 in property protection insurance.
How to File SR-22 Documentation in Michigan: Your insurance company will file the SR-22 certificate with the state for you. For the next 3 years, you need to keep your insurance policy active with no lapse in coverage.
Yes, personal injury protection (PIP) is required in Michigan. Drivers in Michigan are usually required to have at least $250,000 of PIP coverage for medical expenses, though there are some exceptions for drivers with Medicare or Medicaid.
For instance, policyholders with Medicare Parts A and B can opt out of PIP insurance if the other members of their household have their own auto insurance or health insurance that covers auto accidents. Similarly, drivers with Medicaid can purchase $50,000 in PIP if their household members have another auto or health insurance policy that covers crashes. Michigan also offers higher PIP limits, including a $500k limit and an option for unlimited coverage.… read full answer
Personal injury protection helps ensure that everyone on the road in Michigan has some financial assistance for medical expenses in the event of a collision. Drivers in no-fault states are required to have PIP because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.
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