Michigan Auto Reform Details!

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https://www.michigan.gov/difs/0,5269,7-303-12902_93639---,00.html

With new Auto laws set to take effect next year in Michigan, how much do you know about the changes?

​When Does the Law Take Effect?

The current law requires you to have auto insurance that includes unlimited Personal Injury Protection (PIP) medical coverage to pay for your expenses if you are injured in an auto accident. The new auto insurance law allows you to choose a level of medical coverage when your policy is issued or renewed after July 1, 2020. If you are already receiving payments from your auto insurance policy due to injuries from an auto accident, you will continue to receive the current unlimited benefit regardless of the choice you make for the future. This is also true if you are injured in an accident between now and July 1, 2020.
 
Will My Auto Insurance Bill Be Lower When the Law Goes Into Effect?

The new auto insurance law will allow you to choose a level of PIP medical coverage. Insurance companies are required to reduce the premium for this coverage so that there will be an average reduction per vehicle based on the level of coverage chosen.

You will also have the ability to choose different levels of Bodily Injury and Property Damage (BI/PD) coverage. This choice will also affect your premium.

Your total premium and potential savings will depend on the coverage you select. A licensed insurance agent here at McGovern Agency can help you select the right coverage options for your budget.

How Will I Know What Choices I Have and What to Choose?

The new law requires that auto insurance agents and auto insurance companies give you forms that describe the benefits and risks of the coverage options. You may also want to talk with an auto insurance agent to discuss your personal auto insurance needs.

What Are My Options?

Medical Coverage Options

You will be able to choose the level of medical coverage under the Personal Injury Protection (PIP) portion of an auto insurance policy. Below are the PIP medical coverage levels available to you:

• Unlimited coverage per person per accident
• Up to $500,000 in coverage per person per accident
• Up to $250,000 in coverage per person per accident
• Up to $250,000 in coverage per person per accident with exclusions (under certain conditions)
• Up to $50,000 in coverage per person per accident (under certain conditions)
• PIP opt-out (under certain conditions)

Increased Bodily Injury and Property Damage (BI/PD) Levels

The law limits the damages that can be claimed against you as the result of an automobile accident, except in certain situations. This portion of your automobile insurance policy will pay up to your coverage limit amounts if you are found legally responsible for damages in these situations.

The new default BI/PD coverage limits are:

• Up to $250,000 for a person who is hurt or killed in an accident.
• Up to $500,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state.

You may have the option of purchasing other BI/PD coverage limits. However, the lowest limit you may purchase is:

• Up to $50,000 for a person who is hurt or killed in an accident.
• Up to $100,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state.

When you're looking for insurance:

Auto insurance premiums vary among insurance companies, so be sure to shop around. Your premium will depend on the coverage you choose and factors related to your personal situation, such as driving record and claims history. Remember when shopping for auto insurance to compare the premiums, limits, and deductibles between insurance companies to ensure that the quotes are comparable.

DIFS encourages you to consult with a licensed agent when purchasing auto insurance. 

​​McGovern Agency is here for all your insurance needs.
Please feel free to contact us to discuss the auto reform!
(586) 464-2400 ~ Inquiry@TheMcGovernAgency.com

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