Michigan Auto Insurance Reform ​

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​Michigan No-Fault Auto Reform
​Frequently Asked Questions

​What is No-Fault?
Drivers in Michigan are responsible for covering damages to their own vehicle due to an accident, regardless of who caused the accident. While Michigan’s No Fault offers the best unlimited medical protection, it also is the reason for Michigan’s car insurance rates to be the second highest monthly bill most people have.

Why did the State change it?
To reduce costs through medical fee schedules and fraud controls. Medical providers won’t be able to charge auto insurers more than about 200% of what Medicare pays. Starting July 2nd 2020, you are also able to choose from different medical options, which could lower the cost of your auto insurance premium.

What are my options?
There are several different options and it is very important that you talk to your agent about them, since every insurance company might have a slightly different set of rules. While choosing a lower medical limit could decrease your premium, it also comes with a risk. The risk of not being covered appropriately in case of an auto accident.

So, how much will I save?
The good news is that the MCCA fee will be reduced from $220, per year, per vehicle to $100 per year and vehicle.(See our “What is the MCCA fee” post for more info add link to post???) However, it is difficult to estimate your savings without looking at your policy and going over the options first. This is because each policy has unique factors that need to be considered, when calculating your new premium.

Should I increase my Bodily Injury or Uninsured/Underinsured Motorist limits?
Yes. The reason being that the new law allows a person to sue for medical expenses, if his/her limits are used up and you were at fault.

Do I have to do anything?
We highly recommend talking to your agent, so that you understand your options and can make the right decision for you and your family.       Contact an agent today.
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(906) 786-4757
114 N 25th St
Escanaba, MI 49829
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​If you would like to learn more, please check out the videos from Upper Peninsula Insurance Agency below. They are a great resource.

Here are two great comparison charts from CPAN for anyone who has Medicare or Medicaid Coverage. 

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MEDICARE

​MEDICAID