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no fault reform

New Michigan Insurance Law

Insurance is often complicated and the changes to the laws have made it even more challenging to understand and more difficult to choose how to best protect you and your family when buying an auto policy. We want to help you work through these challenges and help you save money while choosing the right amount of coverage for you.  

No Fault Changes Reference Guide: Updated 7/15/2020 4:40 PM

No Fault Reform

The new insurance law took affect today! Your insurance carrier must offer one of the following:

  1. Offer a mid-term endorsement to meet the new changes to MI no fault or
  1. Offer you the option to cancel and reissue a policy

Keep in mind that due to some of the changes in the law, as well as changes in rating factors a mid-term cancellation could possibly decrease your premium, but it might increase your premium depending on your circumstances.

Talk to your agent or call Michigan Insurance Group for Your New Quote!

No Fault Reform

Option 1: Unlimited Coverage

This provides the most coverage and is what you currently carried in the state of Michigan prior to the New Michigan Insurance Law. It will pay for all allowable expenses for you, your care, rehabilitation, and recovery.

 

Option 2: Limited Coverage of $500,000

This is the most your insurance carrier will pay per person per accident for an insured person involved in an auto related accident under the PIP medical coverage. 

 

Option 3: Limited Coverage of $250,000

This is the most your insurance carrier will pay per person per accident for an insured person involved in an auto related accident under the PIP medical coverage. 

 

Option 4: Limited coverage of $250,000 with some exclusions

This option allows a named insured or resident relative to exclude PIP medical coverage provided they have qualified medical coverage that is not Medicare and has a deductible lower than $6,000. Anyone choosing to exclude will not have PIP medical coverage and must rely on their qualified medical coverage in the event of an auto related injury.

 

Option 5: Limited Coverage of $50,000

This is the most your auto insurance carrier will pay, per person, per accident, for the expenses tied to an auto related injury under PIP medical coverage. You can choose this option if you have Medicaid and your spouse and all resident relatives have qualified medical coverage, Medicaid, or coverage under another auto policy that includes PIP at an appropriate limit.

 

Option 6: No PIP Medical Coverage

This option is available if the named insured has coverage under Medicare Parts A, B and any spouse and all resident relatives have qualified medical coverage or are covered under another auto policy that includes PIP at an appropriate limit.

 

Be mindful of the limit you choose, and do not assume your other coverages like Health Insurance or Medicare will coverage all your expenses should you experience an auto related injury. Remember, these other policies may have excluded auto related injuries in the past.

 

For more information talk to your agent or call Michigan Insurance Group for Your New Quote!

No Fault Reform

Where is my lower premium?

It is a common question after the changes were mandated in the New Michigan Insurance Law. It’s true, No Fault Reform can possibly lower your insurance premiums. Although you may be hearing about the required reductions of 10% to 40%, keep in mind that the cost savings is a state wide average and will only be on the PIP portion of your policy, not your total insurance premium. If you retain unlimited PIP you will see an approximate premium reduction of 10%, so if your PIP portion of your policy is $300 you will save $30 per policy period.

 

You can also save additional money by choosing one of the new PIP options which is now allowed through No Fault Reform. However, this is by choosing a lesser coverage limit. So, with PIP choice comes potentially lower premiums but remember you are also lowering your coverage. Careful consideration should be given when making this choice. Only you can decide if the savings are worth making the change. 

 

There are other factors that have changed that may lower or increase your premiums depending on your particular circumstances. With other non-driving factors being removed and the necessity to have all people living in your household identified, listed, or excluded from your policy you could possibly see an increase or decrease to your insurance policy premiums. Maybe it is time to review what your options are?

 

Talk to your agent or call Michigan Insurance Group for Your New Quote!

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