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No-fault insurance changes take effect July 1, 2020

Release Date
Woman leaning out car window holding keys

This information is provided to HFC employees by Human Resources as an informational service.

Public Acts 21 and 22 of 2019 have reformed Michigan’s automobile no-fault insurance law, effective July 1, 2020.

What’s changing?

The state of Michigan currently requires individuals to purchase unlimited personal injury protection (PIP) through their auto insurer. Starting July 1, 2020, under certain circumstances outlined in the new law, you may select different levels of PIP coverage as follows:
• Opt Out ($0)
• $50,000
• $250,000
• $500,000
• Unlimited

As part of your auto insurance, PIP covers medical expenses and lost wages, regardless of who is at fault for the accident. Currently, PIP coverage in Michigan is required to pay for unlimited lifetime medical benefits. This is part of the reason auto insurance has been so expensive in this state.

While unlimited PIP will remain an option under the new law, it will no longer be required. You may also elect a lower lifetime limit of $250,000 or $500,000 (or as low as $50,000, if enrolled in Medicaid). You may be able to opt out of PIP coverage entirely. Your premium will be lower if you carry less PIP coverage.

HFC’s health plans take a primary stance regarding auto-related medical claims. This means HFC’s health plans pay for covered medical claims before your automotive PIP kicks in. If you provide documentation of this fact (such as a letter from your plan provider) to your auto insurer, you may be able reduce your PIP costs and save money on your auto premium.

Keep in mind that your employer-sponsored health plan only covers medical claims per the terms of the policy. It may not cover all medically-recommended services, with all providers, and it will not cover expenses related to assistance with the activities of daily living.

We hope you find this information useful, but we realize that you may still have questions and concerns regarding your PIP coverage and auto insurance. We strongly encourage you to have a conversation with your auto insurance agent as soon as possible to help you make an informed decision. You may also go to the State of Michigan website for more information about Michigan’s new auto insurance law.