Dansard-Little Agency

Auto Insurance Reform

Michigan Auto Insurance Reform begins July 2, 2020. Most people ask, “How does this affect me?” Here is a brief Outline of Changes, along with answers to Common Questions.

You will receive notice from your insurance company approximately ninety (90) days before your auto policy renews. We are here to help guide you through this process.

Outline of Changes – Effective July 2, 2020, Personal Auto Insurance

Outline of Changes – Effective Now, Personal Auto Insurance

Common Questions –  Auto Insurance Reform                                                        

After July 2, 2020  Auto Insurance Reform will affect your auto policy renewal.  Listed below are questions we hear from our clients and answers for you. 

  1. Q. Does my separate medical insurance policy offer the same coverage that is now provided by my auto insurance policy?
    A. Your CURRENT pre-reform auto insurance policy pays for medical expenses under Personal Injury Protection (PIP) coverage.  This auto PIP medical coverage is UNLIMITED. It also provides broader coverage than a medical/health insurance policy as follows:
    • Medical Expenses – unlimited
    • Work Loss  (reimburse for lost wages) 
    • Attendant care (assistance with activities of daily living). 
    • Replacement Services (household activities you can no longer perform). 
    • Survivor Benefits 
  2. QWhen my auto policy renews after July 2, 2020 will it look different? 
    A. Yes, when your policy renews after July 2nd  it will list four parts for Personal Injury Protection:
    • Allowable Expenses (Medical expenses, attendant care, and funeral expenses)  
    • Work Loss (reimburse for lost wages)
    • Replacement Services (household activities you can no longer perform)
    • Survivor Benefits  
  3. Q. My auto insurance policy currently has the required unlimited medical benefits.  Can I choose lower medical coverage with the new Auto Insurance Reform? 
    A. Yes when your auto policy renews after July 2, 2020 you can choose lower coverage for medical benefits, called “Allowable Expenses”,  or you can continue with unlimited medical coverage.

  4. Q. How will I be asked to make changes in my auto policy? 
    A. Ninety (90) days before your policy renews your insurance company will mail papers to explain your options.  You will be asked to sign and return a form if you prefer to select the lower Allowable Expenses coverage option.  
    At future policy anniversaries the Auto Insurance Reform Law also requires your signed form to renew with lower Allowable Expenses coverage. 

  5. Q. Does my medical/health insurance cover injuries in an auto accident and if so, do I still need to purchase PIP medical coverage under my auto policy? 
    A. Not all medical/health insurance policies cover auto-related injuries. You should confirm with your medical/health insurance company prior to making any decisions on changing your PIP auto coverage.   

  6. Q.  Will I see a savings in my auto insurance rates? 
    A. The new law mandates that insurance companies lower their rates for the PIP (Personal Injury Protection)  part of the policy listed in #2 above. Savings amounts will vary based on your situation. 

  7. Q. Will I have a greater liability exposure as a driver in Michigan after the new law takes effect July 2, 2020?  
    A. Yes!   Under Current Michigan Law unlimited medical coverage is required for all drivers. As a result, if you are at-fault in an accident you can only be sued for “pain and suffering” caused by serious injury, disfigurement or death. 
    With the new Auto Insurance Reform Law beginning July 2, you can also be sued for uncovered medical expenses of an injured person, in addition to “pain and suffering” caused by serious injury, disfigurement or death.  
    Example:  An individual chooses lower medical expense coverage of $250,000 and later is injured in an auto accident.  You are involved in the accident and determined to be at fault. If the other person has $1M of medical bills you can be sued for the $750,000 balance of uncovered medical expenses.   
    If you injure several people in an accident your liability exposure is even greater.  (We suggest raising the liability coverage on your auto policy and/or adding an umbrella liability policy)

  8. QWill the required bodily injury liability coverage be higher when my auto policy renews after July 2, 2020? 
    A. Yes!  For the reasons explained above the new law now requires a “default” bodily injury liability amount of $250,000 per person/$500,000 per accident.  All policies with lower bodily injury liability coverage will be increased to this amount when your policy renews, unless you specifically request lower coverage. 
     If you currently have higher liability coverage your policy will renew with your higher protection amounts still in place. 
    We recommend that you review your liability limits and consider increasing coverage, and/or adding an umbrella liability policy. 

  9. Q. Will the same people still be covered under my auto policy for PIP (Personal Injury Protection) medical expenses due to injuries in an auto accident? 
    A. NO!  Medical Expense (PIP) coverage will not extend to children who no longer live with you.  Also, partners or people who live with you who are not relatives may be excluded from medical expense (PIP) coverage.  
    If these  examples apply to you, please contact us to learn how to obtain coverage. 

  10. Q. What should I do when my auto insurance policy is up for renewal?  
    A. Watch for communication from your insurance company ninety (90) days before your renewal date.  Their letter will include forms for you to complete and return if you wish to select new coverage amounts. 

The Dansard-Little Insurance Staff is ready and happy to assist.  Please contact us via email or phone at your convenience. 


 15621 S. Telegraph Rd
Monroe, MI 48161
phone: (734) 241-1133 
Fax: (734) 241-9275

Monday through Friday



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