Michigan No-Fault Auto Reform - General Overview

There are recent changes to auto insurance in Michigan. Here's a general overview of what you need to know.

As of July 2, 2020, you will now be given several choices in the amount of coverage you wish to purchase for medical costs related to auto accidents. Everyone can choose to keep the current unlimited, lifetime benefit, or you can choose to purchase lower limits of $500,000 or $250,000. Some people may be able to purchase as low as $50,000 if you have Medicaid. You may be able to choose to decline all medical coverage if you have Medicare or some health insurance plans. Your insurance company will send you option forms about 90 days before your renewal. More details about your individual policy will be provided then.

There will also be choices to be made about your liability protection if you’re sued. Again, more details will be sent to you about 90 days before your policy renews after July 2.

There are several rating factors that may change your rates. Some of the factors that can no longer be used are credit score, education level, and homeownership and zip code. We do know that the MCCA charge will be reduced from a current charge of $220 to $100 per car per year if you choose to keep unlimited medical coverage. The charge will be eliminated completely if you choose any medical coverage other than the unlimited.

Please make sure to contact us if you have any questions.

Nulty Insurance
[phone] Kalamazoo
[phone] Otsego
[phone]  Iron Mountain