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MICHIGAN AUTO MEDICAL REFORM – PHASE 1




While the insurance industry is still trying to sort through the changes coming to Michigan’s No-Fault system next year, one change has already been mandated. Michigan Senate Bill No. 1 and House Bill No. 4397 were passed and became effective June 11, 2019. While many of the changes to Michigan Auto Insurance Laws take effect after July 1, 2020, there are changes that became effective immediately. These changes are outlined below:


Drivers or occupants of private passenger automobiles and pedestrians are no longer provided unlimited Personal Injury Protection (PIP) coverage through the named insured’s policy unless they are:


  1. A person named on the policy as a named insured;

  2. The resident spouse of a named insured; or

  3. A resident relative of a named insured or a resident relative of the spouse of a named insured.

A pedestrian, driver, or occupant of a private passenger automobile that does not meet the criteria for PIP coverage listed above and who does not have their own Michigan auto policy in effect would most often look to the Michigan Assigned Claims Plan (MACP) for payment of PIP benefits.


Please contact the Oakes Agency to review your coverage needs accordingly.

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