We’re here to help! On July 2nd, 2020, Michigan’s new no-fault auto insurance reform law goes into effect and we want to help you understand your options. Questions? Click schedule a virtual appointment and meet a local insurance agent LIVE on your phone, tablet or computer. We can be wherever you are! Call or send us a text message to 248-583-6255 or 248-265-3444.

Under the old law, all Michigan drivers were required to carry unlimited Personal Injury Protection (PIP) coverage on their auto insurance policy. The new Michigan law allows drivers to select their preferred limit of protection when they renew their policy — as long as they meet the eligibility requirements.

The new coverage options will apply to your policy when it renews into a term starting on or after 7/2/20. For example, if your policy is effective 12/1/19 – 6/1/20, the new options would not apply during the 6/1/20 – 12/1/20 term, but would apply on the 12/1/20 – 6/1/21 term. If you have questions prior to your policy renewing, please call or text message us at 248-583-6255 or 248-265-3444.

For most auto insurance policy holders, the changes will be available to your policy, and you will receive a packet of information including selection forms that will be required if Bodily Injury limits below 250/500 are desired, as well as for PIP selections. You should see this 90 days prior to your renewal. Proof of qualified health coverage or another policy will also be required if a PIP exclusion is desired.

Personal Injury Protection (or PIP) is a coverage that includes medical expenses following an accident. Included in those medical expenses are expenses for care, recovery, rehabilitation, attendant care and some funeral expenses. PIP also includes wage loss, survivor benefits and replacement services. Generally, PIP applies to the named insured, as well as their spouse and the named insured’s resident relatives. Prior to the no-fault reform there was no option to apply a maximum limit that could be paid under medical expenses. This was often referred to as unlimited PIP.

Included in the no-fault reform are defined characteristics that are required of health policies to be considered a qualified health plan. Specifically, the policy must not exclude or limit coverage for injuries related to motor vehicle accidents, and must not contain an individual deductible greater than $6,000. If an individual is enrolled in federal Medicare parts A and B, their health coverage would be considered qualified.

Bodily Injury liability coverage covers claims made against you for injuries to others if you are at-fault in an auto accident. A default minimum for Bodily Injury is being put into place at a limit of $250,000/$500,000. If you choose, you can continue to select a coverage option as low as $50,000/$100,000, but you will need to complete and submit a form verifying your lower coverage selection. Higher limits also continue to be available.