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Auto Insurance Reform Coming in 2020

Governor Whitmer signing no fault auto insurance reform bill

No Fault Reform

Last week, Governor Whitmer signed a bill into law that contains a number of sweeping changes to the No Fault Act. While we are still reviewing all 125 pages of the law to understand these changes and their potential impacts, we thought we’d share a brief summary given the current level of interest.

Highlights of the bill, which is effective 7/1/2020 and later include:

-Consumers can elect to not select PIP coverage if they have their own health insurance that covers auto related injuries.

-If consumers choose to purchase PIP, they can select from the following options and mandatory discounts applicable only to PIP coverage, and based on rates in effect in May 2019:

· $50,000 for Medicaid recipients – 45% discount;

· $250,000 – 35% discount;

· $500,000 – 20% discount;

· Unlimited – 10% discount

-Mini-tort will increase from $1,000 to $3,000.

-Implement a medical fee schedule for medical services based on Medicare fee schedules

-Place limitations on family-provided attendant care services to 56 hour per week

-Establish an anti-fraud unit within DIFS

-Freeze PIP rates until 2028

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