05/22/2020
Some of you may be wondering what is Michigan's Auto Reform?
Today, Michigan drivers are required by law to have a no-fault automobile insurance policy that includes Personal Injury Protection (PIP) benefits. While several states in the U.S. also have no-fault requirements, Michigan’s no-fault law is unique in that the PIP coverage provides for unlimited medical benefits for the lifetime of the injured person when those injuries result from an auto accident. On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage. Under the new plan, drivers will be able to choose from up to six options for Personal Injury Protection coverage. This means you have a choice to make. When you renew your policy after July 2, 2020, you can keep your unlimited Personal Injury Protection Allowable Expenses (PIP AE) coverage limit, which is the same coverage you have today.
But if you choose a PIP AE option with less than unlimited coverage — or the $250,000 PIP Exclusion6 — you may want to factor in your own personal risk tolerance and financial situation. For example, what happens if you’re severely injured in an accident and your medical bills exceed your new coverage limit? Do you have enough health insurance to cover those bills? If you can’t work, do you have disability coverage available? If you get sued for the accident, do you have savings or other assets that could be at risk?
These are all things you’ll need to think about. The good news is our agents are here to help provide you information.
