Why It’s a Good Idea To Reread Your Auto Insurance Policy

Michigan requires drivers to carry auto insurance. Most drivers are aware that auto insurance covers losses in a crash. But what exactly does your policy cover – and does it cover what you need? 

Many drivers “set it and forget it” when it comes to auto insurance. They purchase a policy, pay the premiums, and then don’t really think about it afterward. However, if your household or life circumstances change, this practice can leave you without the coverage you need when you need it most.

A Cautionary Tale from Washtenaw County

A recent Click On Detroit news report tells the tale of a Washtenaw County family whose auto insurer initially denied their claim. The couple was driving through a roundabout near their home when another driver failed to yield, striking their car. The family had their young children, an 18-month-old and an infant, in the vehicle at the time.

When the couple filed their insurance claim, their insurer initially refused to cover the damage. The reason? The children weren’t listed as household members on the insurance policy, even though one of them hadn’t even been born when the couple purchased it. 

The insurer later reversed its decision and agreed to cover the repair costs. However, the situation caused stress and worry for the family, who feared they couldn’t pay the bills out of pocket.

Who and What Does Your Policy Cover?

Michigan requires all drivers to carry minimum auto insurance coverage. This coverage must include:

• Personal Injury Protection (PIP). PIP pays your medical costs if you’re hurt in an accident. It also covers wage loss and replacement services for up to 3 years.
• Property Protection (PPI). PPI pays for damage your vehicle does to other people’s property, like their car, fence, or building.
• Bodily Injury and Property Damage (BI/PD). BI/PD pays for attorneys’ fees and damages if you cause a crash in which someone else is hurt or seriously injured. 

The law requires all drivers to carry minimum insurance coverage for all three categories. Drivers can also purchase other types and amounts of coverage, including collision and comprehensive insurance, “mini-tort” coverage, towing and rental fee coverage, and uninsured/underinsured motorist coverage. 

It’s a good idea to review your policy periodically to ensure your coverage types and amounts fit your driving situation. Always recheck your coverage if:

• You have a child or one of your children becomes old enough to get a learner’s permit to drive in Michigan. 
• You change vehicles.
• You change jobs, move, or otherwise change your driving habits (like commuting further than you did before). 
• You start (or stop) using your car for business purposes, like driving for a rideshare service or making deliveries. 
• An adult moves into or out of your household. 

If you have questions about your coverage, talk to an auto accident lawyer who understands Michigan’s complex auto insurance laws. 

Changes to PIP and Other Michigan Insurance Requirements 

In 2019, Michigan made significant changes to PIP and other insurance coverage requirements. Among other things, these changes allowed some drivers to opt out of no-fault medical coverage, limited attendant care benefits, and reduced the pool of those eligible for coverage through the Michigan Catastrophic Claims Association (MCCA). The impact of these changes is still working its way through Michigan’s legal and healthcare systems. 

The 2019 reforms may not be the last changes to PIP and other auto insurance benefits in Michigan. In early 2026, lawmakers proposed yet another bill affecting insurance benefit claims. These changes would clarify which insurers must pay PIP benefits after a crash, particularly collisions involving motorcycles.

If the latest bill passes, the rules for auto insurance in Michigan will change yet again. Keeping track of these changes can be tough. If you’re dealing with serious auto accident injuries, understanding how these changes affect your coverage can feel impossible. 

Speak to a Knowledgeable Michigan Car Accident Lawyer Today

Michigan car insurance rules can be complex, and they’re constantly changing. You should review your policy at least once a year. Make sure it lists everyone in your household and that the coverage listed fits your vehicles and how you use them. 

If you’re injured or your car is damaged in a crash, don’t wait to talk to an experienced Michigan auto accident lawyer. An attorney can answer your questions and provide insight into the claims process. Contact Sommers Schwartz, P.C., to schedule a free, no-obligation consultation with one of our dedicated Michigan injury attorneys.