Michiganders, Do Not Get Caught With Insufficient Coverage
On July 2nd, 2020 Michigan drivers will be subject to the Michigan no-fault reform law. You can now choose how much personal injury protection (PIP) coverage you want or decline it – with some stipulations.
A Breakdown Of Your Options
Broken down into simple terms, your options are:
- Unlimited PIP coverage
- $500,000 PIP limit
- $250,000 PIP limit
- $250,000 limit with PIP medical exclusion(s)
- Limited to drivers with qualified health coverage that covers automobile accident-related injuries; anyone is eligible for exclusion as long as they have qualified health coverage
- $50,000 PIP limit
- Limited to drivers who are enrolled in Medicaid and whose additional household members have qualified health insurance coverage that covers automobile accident-related injuries
- PIP medical opt-out
- Limited to drivers who have Medicare and qualified health insurance, whose additional household members have qualified health insurance, as well
What This No-Fault Insurance Reform Means For You
Michigan drivers will definitely benefit from the new law in certain ways. However, these benefits come with a few caveats. Namely, you run the risk of sustaining a crushing financial blow if you carry coverage that will not reimburse you for medical expenses.
The good news is, the legislation requires insurance companies to offer more options for PIP coverage, which in turn allows you to lock in the reduced rate while the law is in effect for the next eight years. The reduction is imposed solely on premiums. Decreases in rates are factored by looking at the PIP premium and the vehicle assessment fee charged by the Michigan Catastrophic Claims Association (MCCA). Insurers are required to lower this fee to $100 for those that keep unlimited PIP..
The state announced that the minimum liability is $250,000 per person and $500,000 per accident, but allows people to sign into lower limits at the lowest end: $50,000 per person and $100,000 per accident.
To make your selection, you must complete a designated form that will indicate your preference for limits below $250,000/$500,000. If you choose limits below $250,000/$500,000 you must resign it every renewal period. You may change your selection at any time during this time.
Protect Yourself From Mounting Medical Costs, Michigan
Choosing the low-ball PIP option is truly stepping over a dollar to get a dime. Before choosing a lower PIP option, it is important to make sure there are no gaps with your medical provider.
Compass Insurance Agents are experts in PIP reform. They have spent hundreds of hours for over a year preparing to guide policyholders through the new requirements and limits. When you trust Compass Insurance Agency with your insurance needs, you work with agents who will ensure you will not make a costly mistake in choosing your PIP coverage.
Furthermore, we are able to save you $796 per year on average when you bundle your car, homeowners, motorcycle and boat insurance policies. Everyone can use savings right now! You barely have to lift a finger to save on your insurance. Our Michigan agents work with about 20 of the top insurance carriers to obtain quotes for you. We then present you with the best options and provide direction on making your choice.
Give yourself the protection of adequate PIP coverage at an affordable cost. If you need more advice, we are here for you. Please schedule a time to speak with one of our insurance experts to discuss your options.