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HB 5887

Insurance: no-fault; election to opt out of PIP coverage; modify length of election. Amends sec. 3109a of 1956 PA 218 (MCL 500.3109a) & adds sec. 3015. TIE BAR WITH: HB 5886'26, HB 5888'26, HB 5889'26

2025-2026 Regular Session Introduced by Joseph Fox and 4 co-sponsors

If you stay with the same insurer or its affiliate, your chosen PIP and related coverages remain in effect on renewals after 6/30/2027 until you change them.

bill electronically reproduced 04/23/2026
#insurance:no-fault
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WeVote Research Nonpartisan
Bill Summary · HB 5887

Summary of Michigan House Bill 5887 (2025-2026)

Purpose and intent

HB 5887 aims to modify Michigan’s no-fault auto insurance framework by altering how and when insured individuals can elect and maintain coverage levels, particularly with respect to PIP (personal protection) and related coverages. The bill introduces a new rule tying coverage elections to the insurer (or an affiliate) and sets an ongoing effect for selected coverages unless the insured changes their selection at policy renewal. It also adds a requirement that certain election information be presented conspicuously by insurers. The enacting provisions are contingent on the passage of three companion bills (HB 5886, HB 5888, HB 5889).

Key provisions and changes

  • New conservation of coverage election (Sec. 3015):

    • If an insured stays with the same insurer or its affiliate, the insured’s selected coverage level for specific coverages remains in effect for policies issued or renewed after June 30, 2027. The affected coverages include:
    • Residual liability insurance (Sec. 3009 and 3101)
    • Personal protection and property protection insurance (Chapter 31)
    • Uninsured and underinsured motorist coverage
    • Comprehensive coverage
    • Collision coverage (including coverage required to be offered under Sec. 3037)
    • The retained election continues until the policy is issued with a different effective selection by the insured.
    • Insurers must clearly state that the selected coverage level remains in effect as long as the insured stays with the same insurer or affiliate, unless the insured selects a different option.

  • Election stability and notice (Sec. 3015(2)):

    • An effective selection for a listed coverage type remains in effect until a policy is issued under a different selection.
    • Insurers must conspicuously disclose that the coverage level remains in effect for the insured with the same insurer or affiliate unless they choose another option.

  • Definitions (Sec. 3015(3)):

    • Uses the term “affiliate” as defined in section 2102.

  • Other related provisions (Sec. 3109a):

    • Insurers may offer deductibles and exclusions tied to other health/accident coverage, with reductions in premium to reflect expected loss/expense reductions. These would apply only to benefits payable to the named insured, the spouse, and relatives in the same household, and must receive prior director approval.
    • For policies issued or renewed after July 1, 2020 (and in effect before July 1, 2027), insurers must offer an exclusion related to qualified health coverage for PIP purposes, with specific premium reductions if there is qualified health coverage in the household.
    • If a person is excluded due to qualified health coverage, certain steps and conditions apply:
    • If the excluded person’s household loses qualified health coverage, the named insured must obtain alternative required coverage within 30 days, otherwise the excluded person may rely on the Assigned Claims Plan for bodily injury benefits during the exclusion period.
    • Failure to secure required coverage during the exclusion period could bar payment of PIP benefits for injuries arising in that period, unless covered by another policy.
    • Insurers cannot refuse to prospectively insure or impose premium increases solely because a person previously failed to obtain the required security during the exclusion period.
    • Premium reductions must be clearly shown in the declarations page as a dollar amount or percentage.
    • Some subsections expire or change effective dates after June 30, 2027.

  • Effective date and tie-bar:

    • This bill is designed to take effect only if three related bills (HB 5886, HB 5888, HB 5889) are enacted.
    • The key enactment is to create a bundled reform of no-fault options and PIP exclusions linked to other health coverage, with staged implementation.

Who is affected

  • Auto insurance policyholders in Michigan insured with the same insurer or an affiliate of their insurer on or after the policy renewal after June 30, 2027.
  • Insurers offering personal protection insurance, PIP, and related coverages (residual liability, UM/UIM, comprehensive, collision).
  • Households with qualified health coverage (QHC) and those who have or may establish exclusions for PIP benefits based on QHC.
  • Policyholders who may be subject to premium reductions due to health coverage relationships and deductibles/exclusions linked to other health coverage.

Procedural and timeline aspects

  • The substantive provisions in Sec. 3015 apply to policies issued or renewed after June 30, 2027.
  • The bill explicitly ties its effective date to the enactment of three companion bills (HB 5886, HB 5888, HB 5889), creating a legislative package.
  • Insurers must provide conspicuous notices regarding the continued effect of coverage level elections and the impact of any eligibility changes.
  • The proposed changes include mandates for premium disclosures and specific behavior around QHC exclusions and the Assigned Claims Plan during exclusion periods.

Notes

  • HB 5887 is in the introductory stage (April 2026) and is referred to the Insurance Committee.
  • As a tie-bar bill, its full effect depends on passage of the related HB 5886, 5888, and 5889, forming a comprehensive reform package to Michigan’s no-fault/PIP framework.

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

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