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% or more 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.

+Is Michigan still a no-fault insurance state?

Michigan requires drivers to have no-fault auto insurance on their vehicle. With the new no-fault law, signed on May 30, 2019, drivers will no longer be required to purchase unlimited personal injury protection (PIP) benefits. Beginning July 2, 2020, drivers can elect medical benefit coverage levels of $50,000, $250,000, $500,000 or unlimited. Some drivers may also be able to opt out of PIP medical coverage, depending on their current health coverage. Your independent agent will help you make the PIP medical choice that's right for you when it's time for you to renew your policy.

+What is the minimum auto insurance coverage required in Michigan?

It is mandatory to have liability auto insurance coverage in Michigan before driving a vehicle. As a no-fault state, Michigan also requires PIP coverage in addition to standard BI coverage.

+Should I just select the minimum amount of BI coverage required?

Only you can decide how much coverage you need. However, most advisors do not recommend choosing the minimum amount of coverage required by state law. That's because if you are in an accident in which the other driver or passengers are injured, and those injuries exceed your limits, you may be personally responsible for paying the damages above what your policy covers

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

Your savings will depend on your PIP and BI 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/$100,00. 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.

+Can I still choose unlimited personal injury protection (PIP) on my Michigan auto insurance policy?

Yes. If you do not make a new PIP selection, your renewal will be issued with unlimited PIP medical coverage. Reports show that 99% of all PIP claims have been covered with a $500,000 limit. Consult with your independent agent to determine what level of PIP medical coverage is the right choice for you.

+Can I opt out of purchasing PIP coverage in Michigan?

Drivers with Medicare or other qualified health coverage may elect to not maintain their no-fault PIP medical benefits for auto insurance policies issued or renewed after July 2, 2020. Check with your independent agent before making your decision.

+Who is insured under PIP coverage?

PIP coverage includes the named insured(s), the named insured(s) spouse and family members resident in the household.

+Who is considered a family members resident in the household?

Your independent agent can help you understand if your family member can be on your household policy or if the person should have a separate policy. To get you started, here's some general guidance.

Relationship One household policy Separate policy required
Child owns a vehicle and is not
a resident of the household

Child owns a vehicle and is a
resident of the household
Both options are available
Child temporarily away at


Non-married couple residing
together, each owning a vehicle
Both options are available
Other family members not
related by blood, marriage or
adoption living in the household


+How can I make sure I have the right level of protection?

By educating yourself on the new law, you're already taking a good step. You may also want to consider umbrella coverage for added protection. To help make sure you have the protection you need, talk to your independent agent to help you make the choices that are right for you and your family.

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+Is there anything I need to do now?

For auto insurance policies renewing after July 2, 2020, you can wait until your renewal date to make changes to your personal injury protection (PIP) and bodily injury (BI) coverage options. You may also elect to update your policy before renewal, but only after July 2, 2020. Citizens offers a convenient self-service portal to make selecting your PIP and BI coverages quick and easy. Citizens Auto Reform Assistant (CARA) will guide you through your selections when it is time for you to renew your policy.

+How can Citizens help me with reform?

We know you care about having the right protection for you and your family. We also know the new auto reform laws can seem complicated. We've spent the last several months creating ways to make the selection process as simple as possible.

Citizens Auto Reform Assistant (CARA) – if you are a current Citizens customer, you will be able to make your PIP and BI selection online in four easy steps.

More people – we're doubling the number of call center representatives dedicated to Michigan, so we'll be extra staffed to answer your questions and help you navigate reform.

eSignature – reform will create some paperwork, but our eSignature capabilities will allow you to sign everything electronically and securely.

Resources – our website provides resources to help you explore your options and make an informed decision about your PIP and BI coverage.

Trusted advisors – we partner with the best independent agents in Michigan. Consulting an independent agent can help ensure you have the right combination of coverage, value and price.

+How can I access the Citizens Auto Reform Assistant (CARA)?

You will receive an email or letter from Citizens with a personalized url for you to access CARA. If you do not have that on hand, you can go to to make your coverage selections. You will need your auto policy number and zip code to enter.

You will be able to access your policy in CARA starting 90 days prior to your renewal effective date and up to 45 days after your policy renews.

+Do I need to use CARA to update my personal injury protection (PIP) medical selections?

You do not need to use CARA. There are forms included in your renewal package that you can fill out and return to your agent if you choose to not to use CARA. Your should receive your renewal package around 45 days prior to your renewal start date.

+How long do I have to make updates to my policy through CARA?

The CARA self-service portal is open 90 days prior to your renewal effective date and up to 45 days after your renewal effective date. After that, you will no longer be able to access or make changes through CARA. If you would like to make coverage updates after that, contact your independent agent.

+What happens if I don’t update my personal injury protection (PIP) medical selections?

If you don’t opt for new limits—either through CARA or by submitting forms to your agent—your limit will default to unlimited PIP medical and $250K/$500K or $510K combined single limit (CSL) for bodily injury (BI). Note that these may be higher limits than what you have currently on your policy, which may result in a rate increase.

+What does the premium next to my PIP medical mean?

This figure actually reflects a combination of two charges: the premium for the PIP medical option you chose, plus the related MCCA (Michigan Catastrophic Claims Association) fee. Note that on your policy, these fees are listed as separate entries. Add these two figures from your policy, and compare against the PIP medical premium you see in CARA, to get an idea of the price difference you’ll see with your selection.

+Is there a way I can view my prior premium or the premium for my full policy?

CARA is designed to allow you to quickly update your PIP medical coverage. Because of this, we only show the PIP Medical, BI and premium coverage for your upcoming renewal.

If you’d like to compare your coverage level premiums from the old term to the new term, you can view your current policy at (Remember to combine the PIP and MCCA figures for a true comparison to your CARA selection.)

+Why is the PIP premium I’m seeing higher than last year – even after I’ve altered it?

The figure you see may reflect the combination of PIP medical and the MCCA fees, as mentioned above. In addition, it’s possible that other changes have occurred on this policy term that have affected the PIP medical premium: new drivers, new cars, tickets, accidents, and more.

+Is the PIP medical coverage in CARA for primary or excess coverage?

This will remain unchanged from your current policy, with one exception: If you select the $50k limit, your auto insurance will always be primary coverage. This is because Medicaid is required to select the $50k limit, and Medicaid cannot be primary. So in this case, the premium is CARA would reflect primary coverage.

+Am I able to select an excess attendant care rider through CARA?

Excess attendant care means coverage for nursing services that provide help with everyday activities for someone who has been seriously injured in a car accident. After the new law takes effect, this coverage will now only be automatically included with the unlimited PIP medical option. Excess attendant care coverage can be added to your policy as a endorsement, but not through CARA. Instead, contact your agent who can help add this to your policy.

+Why can’t I make updates to any of my other coverages?

CARA was designed to help you quickly and easily select your PIP medical coverage limits, as required by the new auto reform state legislation. To make additional changes, please contact your agent and they will be able to assist you with those updates.

+What’s the difference between a resident family member and a driver on my policy?

A resident family member is anyone that resides in the household that would need PIP medical coverage if they were injured in an auto accident, whether or not they drive. For example, children under driving age should be counted as resident family members, to ensure they are covered under PIP medical.

+The number of resident family members showing for me is incorrect. Can I update this?

Yes. The default number of resident family members you see is based on estimates for each policy. If this number is not correct, you can easily update it in CARA. Please note: you will not be able to select a number of resident family members that is lower than the number of drivers listed on your auto policy.

+I made my selections in CARA, but I want to make a change. What do I need to do?

Just go back through CARA, make your new selections and submit them again. You can go to and log in with your policy number and zip code or access through My Hanover Policy You will need to eSign the new documents you receive afterward for those updates to take effect. We will apply the most recently signed-off selections to your policy.

+I’m looking for my eSignature documents. What email address/subject line will they be sent to me from?

Your auto reform documents to sign come from The Hanover Insurance Group via Docusign ( Subject line: Your Hanover Insurance policy documents are ready to sign.

+I need my eSignature documents re-sent to me. What do I do?

You can do one of two things:

  1. You can go back into CARA and resubmit your selections, which will generate a new email instantly to you.
  2. You can contact your agent, who can work with us to get your original eSignature documents re-sent to you.

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