2020 Auto Reform

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A couple of items that we wanted you to keep in mind as the new year approaches and the 2020 Auto Reform comes into play.

  • We will now have a choice of our medical coverage limit provided under our auto insurance policy.
  • Limited Property Damage coverage will increase from $1,000 to $3,000.
  • Michigan State Bodily Injury Liability limits will increase from $20,000 per person / $40,000 each occurrence to $250,000 each person / $500,000 each occurrence.
  • MCCA costs will decrease based on the medical option chosen.

As of today, an injured person in an auto accident collects benefits in the following order:

  1. Insurer of the Named Insured;
  2. Insurer of a Spouse or Resident-Relative;
  3. Insurer of the Owner or Registrant of the accident-involved vehicle; then
  4. Insurer of the Driver of the accident-involved vehicle; otherwise,
  5. Injured Person applies for benefits through the MACP (unlimited)

As of 07/02/20, an injured person would collect benefits in this order:

  1. Insurer of the Named Insured;
  2. Insurer of the Spouse or Resident-Relative; then
  3. Injured Person applies for benefits through the MACP ($250,000).

Why are higher Bodily Injury Liability limits important?

If you hurt someone in an auto accident and are found to be negligent, the injured party can sue you for pain and suffering damages. Your Bodily Injury Limits are there to protect you in that sort of lawsuit. With the new law, an injured person will now also be allowed to sue you for medical damages that exceed their own Personal Injury Protection (PIP) limits. Therein lies the reason to select high Bodily Injury Limits – the new law allows a person to select lower PIP limits. This makes it far more likely that an injured person will sue, and you want to be confident your policy limits are high enough to cover you in case of a lawsuit.


  • 8-year PIP freeze (starting July 2020).
  • 56 hour per week limitation on family provided attendant care in the home (starting July 2020).
  • A phased-in fee schedule for medical services will regulate what health care providers charge for auto accident-related services (starting July 2021).


Give us a call if you have any questions as they come about! Stay up to date with our website where we will post any new information that has been released.

We are here to be your Trusted Insurance Risk Adviser!

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Showing 3 comments
  • Rosemarie Geoghegan

    Very helpful information about upcoming changes in auto insurance. Being on medicare I will appreciate more information how it will affect my coverage.

  • William Miller

    Being on Medicare I would appreciate more information myself

  • Michele C Hall

    My home and auto are insured with you. My husband and I when been with your Auto-Owners since 1953. When I moved the policies from the East Detroit office to the Saint Clair office.
    Question: When is the state of Michigan going to lower the rates? When I started with Atkins and Ormond, I believe the cost of my insurance was around $179.00 (3 years ago) and now starting February 6, 2020, $262.96. I’ve had no accident in the past 20-30 years, no tickets since I was 19 years old. When will the rates go down?

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