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.
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