For more than 40 years, Michigan drivers have been forced to purchase unlimited, lifetime Personal Injury Protection (PIP) medical benefits with their auto insurance policy. This expensive mandate, coupled with a lack of cost controls over medical charges, caused auto insurance premiums to skyrocket over the years, landing Michigan in the top spot for the most expensive car insurance in the nation five years straight.

 

Beginning July 2, 2020, all of that will change when the state’s new auto no-fault law takes effect.

 

The law will give consumers what they have been clamoring for: a choice in their level of medical coverage. The law will also rein in dramatic overcharging by medical providers, who have been charging three to four times as much for medical procedures when treating car accident related injuries. Finally, the law will crack down on fraud and abuse, which costs the average family hundreds of dollars a year in additional premiums.

Here’s what you need to know about the new law and what it means for you: