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Michigan Auto Reform

The new Michigan No-Fault law known as Senate Bill 1 went into effect on June 11, 2019. This historic change affects every driver throughout Michigan. The professionals at Metro Agency are here to help you understand how your individual coverage could be impacted and help you transition under the new guidelines.

Some important dates to remember:

  • July 2020 — Statutorily required Personal Injury Protection (PIP) medical coverage options, PIP average rate reductions, increased Bodily Injury (BI) minimum limit and rating/underwriting limitations take effect.

  • July 2021 — Statutory medical fee schedule and attendant care hourly limits take effect.

  • July 2028 — Statutorily mandated average PIP rate reduction requirement ends. Personal injury protection (PIP) medical coverage options - All carriers are statutorily required to offer all options.

Consider the following common family scenarios, for example. Each of these scenarios requires a review of coverage.

Son or Daughter Is Temporarily Away At School

Greg McLaughlin attends college in Virginia, nine months out of the year, but he is at home with his parents in Michigan for the remainder of the year. He has a vehicle with him and is insured on his parents’ policy. What should the McLaughlins do now?


A student temporarily away at school is "generally" considered to be a family member who resides in your household. Greg could remain on his parents’ policy as a rated driver,  the garaging location where the car is kept should be added.  The better option would be to title the car in Greg’s name and get him his own policy.

Son or Daughter Owns A Vehicle, Is A Resident Of The Household, And Has Insurance With A Different Carrier

Monica Appleton just bought her first car. Her parents both have an insurance policy for their vehicles, but Monica elected to use a different carrier for her insurance policy, even though she lives in her parents’ house.


What should the Appletons do now?


The Appletons need to list Monica on their policy as a driver insured elsewhere.

Son or Daughter Owns A Vehicle And Is Not A Resident Of The Household

Allison Smith recently moved out of her parents’ house. Her car is still insured on her parent’s policy, even though she is no longer a resident of the household.


What should the Smiths do now?


It is recommended that Allison have her own policy, in which she is the named insured.

Son or Daughter Owns A Vehicle And Is A Resident Of The Household

​Joe Clarkson recently bought a car so he can commute to his local community college. He currently lives with his parents and is insured on their policy.


What should the Clarksons do now?


The Clarksons should have a separate policy for Joe, in which he is the named insured, and a separate policy for Joe’s parents, in which they are the named insureds.

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