Governor Signs No-Fault Reform Bill

By Kelly Hudson, CIC

May 30, 2019

This morning, Governor Gretchen Whitmer signed into law sweeping changes to Michigan’s auto no-fault insurance law. The legislature overwhelmingly passed a bipartisan no-fault reform package after weeks of negotiations between the legislative leadership.

Senate Bill 1 contains PIP choice levels, an automatic rate rollback on PIP premiums, and a medical fee schedule, among other changes. We highlighted some of those changes in a previous blog post. There’s also a printable document with detailed information below. As a reminder, the big changes include allowing customers to choose their level of Personal Injury Protection (PIP) coverage. Guaranteed rate reduction on PIP coverage only (not the bottom line), would last 8 years until July 1, 2028.

What’s Next?

Important to note is the date the new law goes into effect: July 1, 2020. Legislation like this cannot be implemented immediately. Insurance companies need time to reformat their rating structure and review the bill with their legal teams to make sure they are complying to the new regulation. They are required to file their new rates with the state before July 1, 2020.

We have a printable document below with details of what changes are outlined in the reform bill as it was passed.

PRINTABLE: Changes in Michigan No-Fault Reform Legislation

We will be a resource for you in the coming weeks and months on the changes resulting from No-Fault Reform and the impact this will have on you.