What changed in Michigan

Insurance law does not sit still, but most guides are written once and left alone. Repealed programs and retired forms keep circulating for years. This is what actually changed inMichigan, when, and where to verify it.

1. July 1, 2021

   Minimum coverage

   56-hour weekly cap on family-provided in-home attendant care

   From July 1, 2021 insurers are only required to pay for 56 hours per week of in-home attendant care provided by someone related to the injured person, living in their household, or who had a business or social relationship with them before the injury. The insurer must still cover all medically necessary care up to the selected PIP medical limit, and may contract beyond 56 hours. The Michigan Court of Appeals held the limit does not apply to people injured before June 11, 2019. Insurers must also offer a rider extending attendant care above the chosen PIP limit to anyone selecting $50,000, $250,000 or $500,000.

   Michigan DIFS — Auto insurance FAQ

2. July 2, 2020

   Minimum coverage

   Unlimited PIP is no longer mandatory — drivers now choose from six coverage levels

   For policies issued or renewed after July 1, 2020, 2019 PA 21 and 22 ended Michigan's single mandatory unlimited PIP medical benefit. The insured now selects one of six levels: unlimited; $500,000; $250,000; $250,000 with PIP-medical exclusions for household members holding qualified health coverage; $50,000, available only to a named insured enrolled in Medicaid whose spouse and resident relatives have qualified health coverage, Medicaid or PIP elsewhere; or no PIP medical at all, available only to a named insured with Medicare Parts A and B whose spouse and resident relatives have qualified health coverage or PIP elsewhere. A policy with no valid selection defaults to unlimited. This is the single most misreported fact about Michigan auto insurance — guides that describe Michigan as a mandatory unlimited-PIP state are six years out of date.

   Mich. Comp. Laws § 500.3107c

3. July 2, 2020

   Minimum coverage

   Default bodily injury limits raised from 20/40 to 250/500

   The same reform rewrote MCL 500.3009. Before July 2, 2020 the statutory minimum was $20,000 per person and $40,000 per accident. After that date a policy carries $250,000 and $500,000 unless the insured signs a director-approved form buying down, and the lowest permitted buy-down is $50,000 and $100,000. Residual property damage liability stayed at $10,000 and still applies only to property damaged in another state. Sources still quoting 20/40/10 as Michigan's minimum are citing repealed limits.

   Mich. Comp. Laws § 500.3009

4. July 2, 2020

   Fault system

   Mini-tort limit tripled from $1,000 to $3,000

   MCL 500.3135(3)(e) now allows damages of up to $3,000 for vehicle damage not covered by insurance for motor vehicle accidents occurring after July 1, 2020; the $1,000 cap still governs earlier crashes. The rest of the rule is unchanged: the defendant must be 50% or more at fault, a driver with collision coverage recovers only the deductible, and no mini-tort damages are awarded for a vehicle that was being operated without the required security. Several Michigan state pages written before the reform still say $1,000.

   Mich. Comp. Laws § 500.3135

5. October 1, 2018

   Driving uninsured

   Driver Responsibility Fees abolished and outstanding balances forgiven

   2018 Public Acts 43-50 accelerated the end of the Driver Responsibility Fee program from October 1, 2019 to October 1, 2018. No new assessments were issued after that date, the Department of Treasury stopped collecting outstanding fees after September 30, 2018, drivers ceased to be liable for unpaid balances, and licenses suspended for non-payment became eligible for reinstatement. Guides that still list an annual driver responsibility fee on top of the fine for driving uninsured are describing a program that no longer exists.

   State of Michigan — Office of the Governor