Car Insurance in Michigan

Some of the biggest changes to Michigan law made headlines when they passed legislative chambers or hit the ballot box in recent years, but will truly kick off in 2020.

Still waiting for cheaper auto insurance, or to place your first legal sports gambling bet? Those policies and a number of others take effect in 2020.

Michigan cars

Cheaper auto insurance

On July 1, 2020, Michigan’s new auto insurance law will go into effect, meaning Michigan residents will soon be able to change their level of personal injury protection, or PIP, coverage.

The law was signed in May 2019 and ushered in sweeping changes to the state’s auto no-fault policy, including allowing senior citizens and people with health insurance that covers auto-related injuries to fully opt out of PIP coverage. The other four levels of coverage available are unlimited coverage, $500,000, $250,000 and a minimum $50,000 option for some Medicaid recipients.

Each level of coverage would come with a guaranteed rate reductions on PIP coverage costs that begins July 1, 2020 and would last eight years. The reductions range between 10 percent for unlimited coverage and 100 percent for those who opt out.

Another major shift in the deal sets a fee schedule for what health providers can charge when treating auto-related injuries, which will be set to 190 to 230 percent of Medicare rates in 2023 when fully phased in.

It’s unclear exactly how much the changes will impact auto insurance costs for Michigan residents, and will largely depend on what type of coverage auto owners choose.

One big change will be a decrease in the fee charged by the Michigan Catastrophic Claims Association. The vehicle assessment fee is dropping from $220 to $100 starting in July 2020, and will only be charged to people who opt to continue unlimited PIP coverage as long as the MCCA isn’t in deficit.

Michigan cars

Medicaid work requirements

Beginning Jan. 1, 2020, most able-bodied adults between the ages of 19-61 in the Healthy Michigan program will have to prove an average of 20 hours of workforce engagement like working or job training per week, or 80 hours per month.

Exemptions include pregnant mothers, people with disabilities, caretakers of disabled dependents, caretakers of children under age 6 and individuals who have a medical condition that results in a work limitation.

The bones of the legislation passed in 2018, but in 2019 lawmakers went back for a few tweaks designed to make it easier for recipients to comply with the new reporting requirements.

Gov. Gretchen Whitmer lost a last-minute bid to push pause on Michigan’s new Medicaid work requirements, and the Department of Health and Human Services began sending out letters to beneficiaries explaining how to comply with the new program in December.

About robertjrussellcompanies

Robert has been helping individuals and business owners since 1985 and the Robert J Russell brand has spread to over 260 Licensed Insurance Agents/Brokers and over 40 Licensed Realtors all over the United States. * find out about me - visit
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