Why is there a new law?

For years, Michigan drivers have paid some of the nation’s highest auto insurance premiums. Our state’s no-fault law required every motorist to carry unlimited Personal Injury Protection (PIP) coverage.

The Michigan legislature acted last year to give drivers more flexibility with their auto insurance. Effective July 2, 2020, you’ll have the ability to select new coverage options for Personal Injury Protection Allowable Expenses coverage.* Depending on the selections you make, you may be able to save on your premium.

What are your options, and what do they mean?

The new law lets you choose options ranging from the unlimited coverage you have today to ones that may allow you to completely opt out of PIP Allowable Expenses coverage, depending on eligibility. You’ll want to weigh what you can save against the amount of protection you want. Consider your assets, as lower coverage could expose you to medical bills or lawsuits.

Your local, licensed AAA Insurance agent can provide information about the options available for you to select.

When do you need to act? While this change in the law goes into effect July 2, 2020, you can either wait for your renewal date or you can contact your AAA agent and ask about the various options.

How can AAA help you today?

As a AAA Member, you can call on a local, licensed AAA Insurance agent at any time with no obligation—even if you are not currently insured through AAA Insurance. You can also find quick help online at AAA.com/Reform.

If you have auto insurance through AAA now, we’ll be in touch before your renewal date to provide information on the options available (or you may reach out to us ahead of time) so you’ll have time to make the right decision for you. As Michigan motorists ourselves, we are—quite literally—here to serve you.


This story was featured in the
May/June 2020 issue of AAALiving Magazine

Find Out How AAA Can Help

Have questions about Michigan’s No-Fault Auto Insurance Reform? We will help you navigate through these important changes.

*Please note that certain PIP AE options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the No-Fault Act for complete details. Subject to regulatory approval. Coverage is subject to eligibility, terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Savings opportunities subject to eligibility requirements.

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