As of July 2nd, Michiganders now have choices when it comes to your auto coverage due to the reformed personal injury protection (PIP) law. You can select one of the following:
- 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
But there is a catch. The new PIP law in Michigan is complex in nature and can be confusing for those who are not well versed in the terminology. The overhaul includes significant changes to first-party and tort liability for auto accident victims.
Even the forms are somewhat mind-boggling to the average person. The Department of Insurance and Financial Services forms present different levels of PIP coverage and liability coverage. The stakes when filling them out are high because they dictate how protected you are.
Insurance agents provide the forms and are responsible for helping translate them for policyholders. This puts you in the precarious position of relying heavily on your insurance agent to steer you in the right direction when making these tremendously important decisions about your auto coverage.
With this new PIP law and another proposed law is on the horizon for Michigan, you need to choose your auto insurance agent carefully in order to avoid financial disaster.
Limiting Your Auto Insurance Agent’s Liability From Negligence
House Bill 4520 seeks to absolve auto insurance agents of liability when Michigan policyholders are adversely affected by their agent’s negligence, omissions or errors. It limits the policyholder’s ability to sue the agent.
Policyholders are already at a disadvantage under current Michigan law when it comes to establishing insurance agent liability. Now, House Bill 4520 aims to take that a step further by proposing that:
- Insurance agents are under “no duty or obligation to advise” their customers about the insurance they need and/or require.
- Insurance agents are under “no duty or obligation . . . to explain” to their customers what their coverage involves.
- Policyholders who face consequences due to their auto insurance agents’ negligence will not be able to sue for damages, with certain exceptions.
- In the few cases where policyholders can sue, they will be left with restricted damages and causes of action.
Ultimately, House Bill 4520 eliminates the incentive agents currently have to carefully weigh and explain their customers’ coverage options. And this puts you at a distinct disadvantage.
Why Are We, As Insurance Agents, Telling You This?
As a family-oriented agency that has always strived to provide exemplary customer service, we want to protect your interests. Protection starts with awareness.
Unlike other insurance agencies, many of which are driven solely by profits, we will not capitalize on the new PIP law or the proposed House Bill 4520. We are an independent agency and we prefer it this way because it means we are not obligated to recommend one insurance provider over another. This is ideal for us because we want to do what is best for YOU.
This is one reason why we partner with about 20 of the top insurance carriers. We run quotes from each provider and present you with the best choices based on your specific needs. We can save you $796 per year on average when you bundle your insurance policies including car, homeowners, motorcycle or boat.
In addition to their dedication to serving our local communities throughout Michigan, Compass Insurance Agents are well-informed experts on PIP reform. They have devoted hundreds of hours for more than a year to prepare to guide policyholders through the new requirements and limits. When you put your trust in Compass Insurance Agency to meet your insurance needs, you work with agents who truly care about your family’s welfare, who will do everything in their power to steer you in the right direction when choosing your PIP coverage.
Do not risk getting potentially costly advice from a less knowledgeable agent! Instead, rest easy in the honest way that the Compass Insurance Agency does business. We have been looking out for our customers since 1969 and we will do the same for you – with your Michigan PIP coverage decisions along with any other coverage you may need.
Please schedule a time to speak with one of our insurance experts to discuss your options.
