Changes are coming to Michigan's auto insurance laws, effective July 2020, and we're here to help! Please browse the resources below and feel free to contact us with any questions or to discuss your situation.
The new law focuses on changes to the Personal Injury Protection (PIP) portion of the auto insurance policy and premium. It allows Michigan drivers to choose the level of PIP coverage.
To determine if mid-term changes are allowed, contact your insurance advisor to make an educated decisions.
To make any changes to your current PIP elections, you will need to sign the forms provided for your auto insurance carrier. At renewal, the forms will be mailed or sent electronically to people 90 days prior to renewal.
Unlimited PIP benefits
$500,000 PIP benefits
$250,000 PIP benefits
$250,00 PIP benefits with PIP medical exclusions due to Qualfied Healthcare Coverage
$50,000 (must be enrolled in Medicaid)
Medicare Opt Out (must enrolled in BOTH Medicare Part A&B
Qualified Health Coverage Exclusion (all members of household must have other health/accident coverage that doesn’t exclude auto related injuries and the deductible must be less than $6000 per year
You will need to make a PIP election each year if you choose anything other than unlimited.
Health and accident coverage that does not exclude or limit coverage for injuries related to auto accidents and has an annual individual deductible of $6,000 or less and/or coverage under both Medicare Parts A and B.
Personal Injury Protection medical coverage pays allowable expenses for medical care for people injured in auto accident. It’s necessary and beneficial as it covers additional expenses as result of an auto accident that your health insurance may not pay for like wages and attendant care.
It depends the PIP coverage you choose. The savings are from 10%-46% reduction in the PIP portion of the premium only. The MCCA fee is reduced by 55% to $100. Individuals choosing less than unlimited PIP coverage will not pay this fee.
The PIP is only a portion of your auto policy premium. There are other factors and costs involved that impact the premium.
Yes, potentially there are medical benefits such as lost wages, modifications to home and vehicles to accommodate your injuries, and attendanct care to assist with daily living activies. It’s imperative to know the benefits provided by your health insurance for auto accident related injuries prior to choosing a PIP level less than unlimited.
Contact your health care provider and speak with a customer service representative. They are the experts who can give you the accurate information needed to make a decision.
Ask specifically if your medical insurance provides coverage and care in the event of an auto accident. Ask if they are a primary or secondary payer or do they exclude benefits related to an auto accident.
Bodily injury is auto insurance coverage that pays for injuries a driver causes to other people, including other drivers, passengers, and pedestrians. This coverage pays for medical expenses, lost wages, and pain/suffering up to your policy limit. It’s important to understand that if you are responsible for injuries to another person and the cost of their medical expenses and other care exceed their PIP policy limits, you may be liable for those expenses.
The new BI minimum limits are $50,000 per person and $100,000 per accident. If you are responsible for the accident and expenses exceed more than $50,000 per person, you are personally responsible for the expenses. Policies after renewing after July 2nd, will have default BI limites of $250,000/$500,000. You will need to sign a form to opt out of the default BI limit.
Order of Priority determines who’s auto insurance carrier pays PIP benefits to individuals involved in an auto accident. With the auto reform, the order of priority will follow the insured’s auto insurance policy.
Yes. The law changed who will have coverage under your auto policy. For coverage of drivers who drive your car, they must be residents and relatives of your household.
Yes, if the daughter/son are temporarily away at school and are still considered residents of household, they are covered.
An umbrella policy is a good idea to protect drivers as it’s an additional liability policy that can protect you once you’ve exhausted the liability limits of your auto policy. The umbrella would help protect your personal assets in the event you owe above and beyond the policy liability limits.
The Michigan Assigned Claims Plan is program that provides access to Michigan No-Fault Benefits for people injured in an auto accident when no applicable auto insurance coverage is available. The No-Fault Auto reform reduces the benefits provided from unlimited to $250,000 limit.
No, the Michigan Catastrophic Claims Association fee is reduced by 55% from $220 to $100 per vehicle for policies with unlimited PIP selection. This is a fund that collects fee and distributes funds in the event of an accident for PIP benefits.
Motorcyclists order of priority for coverage changed per the Reform. Motorcyclists pursue coverage through the owner/registrant of the motor vehicle involved in the accident and will to limits their auto policy. If the limits of the policy are not unlimited, the motorcyclist will received those limited benefits selected by the driver, regardless of the motorcyclist’s own PIP benefits. The motorcyclists would collect fro the vehicle driver’s policy and then their own.
If you are driving an employer-provided vehicle, coverage will first be provieded through your employer’s insurance company for that vehicle. Coverage would next come from your personal auto insurance policy. If those limits are exhausted you would next move to a spouse’s or resident relative’s policy and finally MACP.
If the son/daughter lives part time or 50/50 with both parents, the son/daughter should be listed on the policy that matches the son/daughter’s driver’s license. The licence should match the address where the child primarily lives.