There has been a ton of news in recent days about pending auto insurance reform. A new bill has passed the house and the senate and the governor is expected to sign it into law in the coming days. But what does it all mean? Here is what we know so far:

  • The new bill will have options for Personal Injury Protection (PIP). Currently, Michigan has unlimited PIP. The proposed changes would allow consumers to choose their coverage level depending on their health insurance coverage and other factors.
  • There will be a Medical Fee Schedule. This would cap fees that healthcare providers could charge for auto-related treatment.
  • There will be Rating Factor Restrictions. The proposal would eliminate non-driving rating factors such as gender, ZIP code, or credit score. But insurance carriers could still rate based on “territories”.
  • There will be a Managed Care Option. This would allow insurers to sell separate policies for managed care, rather than having it be part of PIP.
  • There may be MCCA Changes. The proposal would not eliminate MCCA but it would reduce the fee for drivers who elect lower medical coverage.

There are other changes, and of course more details. We will continue to provide updates as we have them. No matter what, any changes will take time – lots of time- and no one should expect their bills to go down right away, or even soon. It’s business as usual for now!

Continue to follow our website and social media pages for more updates, or call us at (248) 531-8300 with questions!

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