The Evolution of Michigan's Auto No-Fault Insurance System

Michigan’s auto no-fault insurance system, established in 1973, was designed to provide unlimited lifetime medical benefits for accident victims. Over time, rising costs led to some of the highest auto insurance premiums in the nation, prompting legislative reform in 2019.

Key Legislative Changes (2018–Present)

• 2019 Reform – Governor Gretchen Whitmer signed Senate Bill 1 on May 30, 2019, introducing reforms to reduce premiums and strengthen consumer protections.
• PIP Choice Implementation – Effective July 1, 2020, drivers could choose their level of PIP medical coverage, from unlimited to as low as $50,000, depending on health coverage.
• Fee Schedule and Cost Controls – The reforms introduced a medical provider fee schedule and additional cost-control measures to address escalating medical expenses.
• Increased Liability Coverage – Minimum liability coverage requirements were raised to ensure adequate protection for accident victims.
• DIFS Frequently Asked Questions – The Michigan Department of Insurance and Financial Services offers clarification on the liability coverage requirements and other aspects of the auto insurance reform.

While these reforms lowered some premiums, catastrophic crash survivors have faced devastating impacts and paid the price. Care reimbursements were reduced by 45%, making it nearly impossible for survivors to access critical home and attendant care. The Michigan Supreme Court’s Andary decision offered relief only to those injured before June 11, 2019, leaving a large group of survivors without necessary support. Home care, a medically necessary and cost-effective alternative to hospitalization, remains inaccessible for many, and providers face unsustainable financial pressures.

We urgently need legislative action to fix care reimbursement rates and ensure all crash survivors receive the care they paid for. Without action, lives, independence, and the home care workforce are at risk.

Take action today to support meaningful change by calling upon our elected officials to prioritize reform.