Gianetta Palmer is a writer, copywriter, and essayist. Her work has appeared in EverydayHealth, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes about car insurance in her spare time.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Reviewed by Sara Routhier
Director of Outreach

UPDATED: Mar 8, 2012

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If you live in one of the states that require drivers to carry no fault insurance coverage, then you must make sure that it is included in your policy before you can legally register and drive your vehicle. Currently in Michigan, no fault insurance is unlimited. In fact, Michigan is the only state that offers unlimited injury coverage.

A new bill is being proposed that would put a cap on the amount of coverage that insured drivers will receive. There would be an option to purchase coverage at various levels, with the highest amount of coverage being $5 million.

Coverage Options 

Proposed Changes to Michigan No Fault Insurance


With the new law, insurance claims would be divided. Any claims made before July 1, 2012 will be covered under the current unlimited rate. Claims made after July 1 will have the coverage that drivers chose. One option will be $500,000 to $5 million in personal liability coverage, which would be the absolute maximum that policy holders can claim if they carry the less expensive policies. Claims up to $500,000 will receive 100 percent, while claims of $500,000 to $1 million will be paid at 90 percent. Claims ranging from $1 million to $5 million will be paid in full.

Caregivers and Health Providers Upset

Many people are not impressed with the proposed changes to Michigan no fault insurance coverage, especially those who work within the health care industry. These people have a number of reasons for not wanting these changes, including:

  • The proposed amount of coverage will not cover lifetime medical expenses.
  • Not all medical expenses may be paid for if there is a cap on coverage.
  • Patients may have to leave hospitals early and not get all of the care they need.
  • Patients may not be able to receive as much follow-up care as they need.
  • Patients may not be able to receive in-home care if they need it if they do not have enough coverage.

Health care workers are worried that they will not be able to provide all of the necessary care to patients who have been in auto accidents because the victims’ insurance will not cover everything that is needed. On top of having less coverage, there is no guarantee that premiums are going to be lower, although it is proposed that policyholders would receive lower rates, at least for their first year of coverage.

Talk to Your Insurance Representative

If you would like to learn more about the proposed changes to Michigan’s no fault insurance laws and requirements, talk to your insurance agent. If you do not currently have insurance, now is a good time to start getting quotes to see what all of the companies are charging. While you are getting your quotes, you can ask about the changes and how they will affect any coverage that you buy or currently hold right now.

Enter your zip code today to get a number of quotes, and learn how these changes could affect you if you are involved in an auto accident.