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Michigan auto reform

We know you care about having the right protection for you and your family. We also know the new auto reform law can seem complicated. As one of Michigan's largest insurance companies, we have the expertise to help guide you through reform. 

As your policy comes up for renewal, we'll send you information about new tools and resources to help you explore your options and make coverage selection fast and easy. Take a look at our brochure for a summary of what reform means for you. 

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Reform at a glance



July 2, 2020 effective date of most auto reform changes


At least $120 savings per vehicle on Michigan Catastrophic Claims Association assessment, 10% to 100% potential personal injury protection (PIP) premium savings


$250K/$500K coverage is the default minimum limit if you don't take action, $50K/$100K is the minimum bodily injury (BI) allowed


Choose from 6 personal injury protection (PIP) medical options. if you do not choose a limit, you will default to unlimited PIP.


$500,000 of personal injury protection (PIP) medical coverage per person covers 99% of claims.


Independent agents are the #1 resource to help you navigate your auto reform options


Frequently-asked questions about Michigan auto reform

The new law requires new selections from you. We know there is a lot to consider before choosing the right level of coverage. We have answers to your questions. Need more guidance? We recommend that you work with your independent insurance agent to help ensure you have the best combination of protection, value and price.


What is personal injury protection (PIP) coverage?

PIP covers medical bills and lost wages when you or your passengers are injured in a car accident. The cost of PIP coverage varies based on your coverage limit selection. Reports show that 99% of all PIP claims have been covered with a $500,000 limit.

What is bodily injury (BI) coverage?

BI pays for injuries to others in a car accident in which you are at fault. Your BI coverage limit must meet the new state required minimum of $50,000 per person and $100,000 per accident.

What is the new Michigan auto insurance law?

Senate Bill 1 was signed into law by Michigan Governor Gretchen Whitmer on May 30, 2019, taking effect as of June 11, 2019. The new law is designed to provide more affordable auto insurance in the state by providing drivers with more coverage options. Here is what has changed:

  • Personal injury protection (PIP) options. With the new law, drivers will no longer be required to purchase unlimited no-fault PIP and can instead choose their coverage level. Qualifying drivers may also choose to opt out of PIP coverage.
  • Bodily injury (BI) minimum limits. BI minimum limits will increase from $20,000 per person/$40,000 per accident to $50,000/$100,000, with a default minimum of $250,000 per person/$500,000 per accident.
  • Driver savings. Drivers can save anywhere from 10% to 100% on their PIP coverage, depending on their election and their healthcare coverage.
  • Rating prohibitions. Insurance carriers may no longer factor in gender, marital status, home ownership, education, occupation, credit score and postal zone to premium rates.

For more details and other notable changes, see our summary of the law.

Will my auto insurance rates change with Michigan's no-fault reform?

Your savings will depend on your personal injury protection and bodily injury selections. The new law calls for a reduction of PIP premium cost based on the coverage selected, starting at 10% savings. Additionally, policies with unlimited PIP coverage will see a 55% reduction in Michigan Catastrophic Claims Association (MCCA) fees, from $220 to $100 per vehicle. This fee will only be charged to those who choose to maintain unlimited PIP coverage, while those who choose lower limits may avoid the fee altogether.

The new law also requires insurance carriers to increase bodily injury minimum limits from $20,000 per person/$40,000 per accident to $50,000/$100,000. BI coverage will default to $250,000/$500,000 under the new law, but consumers may choose lower limits by completing a selection form.

It is important to consider a balance of coverage and price when making a coverage decision.

How much PIP medical do I need?

The new law provides you with six options. The limit you select is what your auto insurance will pay per person, per accident, should you or a resident family member be injured in an accident. If you do not choose a PIP medical coverage limit, the unlimited option will apply by default and your PIP savings will be reduced.

PIP medical options To consider
  • Offers the most protection, but will have the highest premiums
  • Some PIP premium savings and still the highest PIP limit in the country
  • The vast majority of claims are covered by a $500,000 medical limit
  • More PIP savings in exchange for a coverage limit reduction
$50,000 in coverage
  • Named insured must have Medicaid to qualify
  • Some PIP benefits, such as attendant care, van/home modifications, copays and deductibles, may not be covered
No PIP medical coverage for anyone covered on the policy
  • Most savings but no PIP medical coverage
  • Named insured must have Medicare (Parts A and B)
  • Other resident family members must have "qualified health coverage" or another auto insurance policy that covers PIP medical
No PIP medical coverage for excluded insureds, limited $250,000 for non-excluded insureds
  • Greater savings, but more risks than other options
  • Resident family members must have "qualified health coverage" to exclude

Citizens and Michigan go together

As a company with headquarters in Michigan, we understand the auto insurance market better than most. In fact, we wrote the very first auto insurance policy in the state and have been protecting drivers in Michigan for more than 100 years.

Protecting Michigan drivers since


250,000 +

Michigan households choose Citizens


Michigan based employees


Can't believe how fast my car was taken care of. A week to get it fixed and given back. Thanks

Debra, Big Rapids

Resources to help you navigate reform

No-fault auto reform basics

No-fault auto reform basics

Read our Michigan auto reform legislative summary for need-to-know information.

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Policy renewals

Policy renewals

We've made it easy for you to complete recertification and renew your coverage using Citizens Auto Reform Assistant (CARA) when your policy is eligible for renewal.

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Insurance made clear

Insurance made clear

Learn how independent agents make insurance easier to understand.

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