Michigan Auto Reform
We hope you and your family are well and staying safe.
Starting July 2nd, 2020, you could keep your unlimited PIP coverage (Personal Injury Protection) or you can choose a lower amount. Lessor options include 500k or 250k PIP limit and depending on your health plan and/or if your entire household is Medicare/Medicaid eligible, you may qualify for a much lower amount.
If you listen to the politicians and news media, unfortunately their narrative is misleading with proclaimed “significant premium savings” for auto insurance. What they are not telling you is that any potential “significant” savings will come at a tremendous cost by way of severe reductions in extremely important coverages.
PIP is your 1st party medical coverage. Its unlimited today and we are encouraging most of our clients to continue with unlimited. Reasons being is that with any new law, it will require a few court cases to set legal precedent. More convincingly, if you elected a 250k PIP limit and a household family member is severely injured in an auto accident, 250k will be spent quickly considering the cost of emergency care at the local hospital. By keeping unlimited PIP, you will still benefit from premium rate reductions as the MCCA fee will be decreased by $120 per vehicle on your policy. If you have two or more vehicles on your current policy, you are talking about hundreds of dollars in savings.
In addition, our agency is now required by the State to encourage you to increase your BI limits (Bodily Injury) to 250/500 or higher if your current limits are lower than this new defaulted limit. This is important b/c the folks who created this new law, know its going to get more litigious in Michigan. The BI limits is the section of your policy designed for the “other driver” to tap into in the event you or household driver are found liable in an auto related accident. The new law allows for MI drivers to file suit against at fault drivers for economic damages associated with medical bills. This concerns us greatly and is also the reason why all the personal injury attorneys and lobbyists have remained incredibly quiet on this subject.
You have trusted and supported our agency, and we ask that you continue to trust us. We are in the business of protecting you and your family when the unthinkable happens.
There are many areas of caution we see with this new law. Making an educated choice over price could be crucial in how a catastophic claim would impact you and your family. Saving a hundred dollars could cost you hundreds of thousands.
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