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HB 5030

Insurance: no-fault; deductibles for PIP benefits; require insurer to offer. Amends sec. 3109 of 1956 PA 218 (MCL 500.3109).

2025-2026 Regular Session Introduced by Kelly Breen and 6 co-sponsors

Michigan bill requiring auto insurers to offer PIP benefit deductibles as optional premium-reduction alternative to current unlimited no-fault coverage.

bill electronically reproduced 09/18/2025
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WeVote Research Nonpartisan
Bill Summary · HB 5030

Legislative bill overview

HB 5030 amends Michigan's no-fault insurance law to require insurers to offer deductibles as an option for Personal Injury Protection (PIP) benefits. Currently, Michigan law provides unlimited PIP coverage without deductibles. This bill would give consumers the choice to select a deductible option, potentially reducing their premium costs in exchange for higher out-of-pocket expenses when claims occur.

Why is this important

Michigan has the highest no-fault auto insurance rates in the nation, largely due to unlimited PIP coverage mandates. Allowing deductibles could provide consumers with cost-saving alternatives, particularly benefiting lower-income drivers and those seeking cheaper insurance. However, this change could shift financial risk from insurers to injured consumers and may disproportionately affect people who cannot afford high deductibles when injured.

Potential points of contention

  • Premium reduction uncertainty: While deductibles typically lower premiums, the actual savings amount and whether they would be substantial enough to matter to consumers remains unclear
  • Access to care concerns: Higher deductibles may discourage injured individuals from seeking necessary medical treatment, potentially worsening health outcomes
  • Equity implications: Deductible options could create a two-tier system where wealthier individuals maintain comprehensive coverage while lower-income drivers accept riskier deductible plans out of financial necessity

Compiled from official sources — confirm details with the bill’s official record.

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