Auto Insights – The New Michigan Auto Insurance Reform Law
Part 4: Order of Priority

Michigan Auto Insurance Reform –
Order of Priority

Michigan’s new auto insurance reform law will take effect on July 2, 2020, bringing a number of changes to the current no-fault insurance system. An important change involves Order-of-Priority (OOP), which determines the insurer or entity primarily responsible for payment of personal injury protection (PIP) benefits resulting from a motor vehicle accident in Michigan or another state.

Under the old priority, an uninsured occupant injured in someone else’s car or a pedestrian who was injured would seek benefits from the owner/operator of the vehicle involved. This is no longer how these injuries will be covered.

Under the new law, an injured person collects PIP benefits in this order:

Drivers or Passengers of Private Vehicles:

1. Injured person’s own policy
2. Policy insuring any relative resident in the same household
3. Michigan Assigned Claims Plan (MACP)

Employer Provided Vehicles:

1. Insurer of the employer provided vehicle
2. Injured person’s own policy
3. Policy insuring any relative resident in the same household
4. MACP

Motorcyclists:
(Applies to operators or passengers of motorcycles.)

1. Insurer of the owner or registrant of the motor vehicle involved
2. Insurer of the operator of the motor vehicle involved
3. Insurer of the motorcycle operator
4. Insurer of the motorcycle owner
5. MACP

Non-occupants (pedestrians and bicyclists):

1. Insured person’s own policy
2. Policy insuring any relative resident in the same household
3. MACP

Operators of Vehicles for Hire (Including Uber/Lyft)

For Order-of-Priority information regarding operators and passengers of vehicles for hire, please contact your auto insurance agent.

Operators of Vehicles for Hire (Including Uber/Lyft)

Historically, OOP for a Michigan no-fault accident claim has been a bit confusing. Unfortunately, the confusion continues with the new law. While our goal is to provide you with a basic overview of the changes to OOP, the above information may not cover all possible scenarios. That’s why it’s a good idea to talk with your insurance agent if you have questions regarding any aspect of auto insurance reform.

A representative from your auto insurance carrier will be sending you more details in advance of the July 2, 2020 effective date. Reading and understanding these materials will help you determine the best option for you and your family. You’ll also find helpful Michigan Auto Insurance Reform Law information by visiting Michigan.gov/autoinsurance. Of course, our VTC agents are ready to answer any questions you might have. Give us a call, or visit vtcins.com.

We invite you to check out our blog next week for an in-depth look at liability coverage as it applies to Michigan’s new auto insurance reform law.