What happened: A bipartisan Michigan bill would let more drivers opt out of no-fault PIP coverage and raise the health-plan deductible ceiling.
Who’s involved: Seven Michigan state senators; auto insurers, agents, and policyholders statewide
What’s at stake: The PIP opt-out deductible threshold would rise from $6,000 to $6,579, and a longstanding eligibility restriction would go
Why it matters: Carriers and agents would need to update opt-out forms, disclosures, and underwriting workflows
Where it stands: Introduced October 14, 2026; referred to committee
A $579 bump to a deductible threshold does not sound like much - until it changes who qualifies to drop PIP coverage entirely.
Michigan Senate Bill 1208, introduced October 14, 2026, by Senators Lindsey, McBroom, Cavanagh, Runestad, Outman, Theis, and Bellino, proposes targeted amendments to section 3107d of the Insurance Code - the provision that lets policyholders opt out of personal protection insurance (PIP) benefits.
Right now, the PIP opt-out only applies to policies issued or renewed after July 1, 2020 - a threshold set by Michigan’s 2019 no-fault reform. SB 1208 would scrap that date entirely. If it passes, the opt-out would cover any auto policy providing security under section 3101. More drivers could elect to drop PIP medical benefits, provided they and everyone in the household carry qualifying health coverage.
The maximum annual deductible for health coverage to count as “qualified” under the opt-out would rise from $6,000 to $6,579 per individual. The bill also shifts how that cap gets recalculated: instead of the state insurance director adjusting on July 1 each year based on the medical component of the Consumer Price Index, the calculation would happen in January, taking effect the following July 1. The $500 minimum-adjustment threshold stays put.
Insurers would have to tell policyholders - conspicuously, the bill specifies - that a PIP opt-out election stays in force as long as the insured remains with the same carrier or an affiliate, unless revoked in writing. The bill also swaps gendered language for gender-neutral terms throughout the section.
SB 1208 has been referred to the Senate Committee on Finance, Insurance, and Consumer Protection. No hearing date has been scheduled.
For auto carriers, personal lines agents, and claims teams in Michigan, a passed version would mean updating opt-out election forms, revising disclosures, and adjusting the deductible screen in underwriting systems.
SB 1208 is a proposed bill referred to committee. Its provisions would take effect only if passed by both chambers and signed into law. The language here reflects the bill as introduced; amendments during committee or floor proceedings could change its final form.
