Michigan’s Auto No-Fault Insurance Reform
While the new auto coverage options go into effect on July 2, 2020, you won’t need to take any action until it’s time to renew your policy. In the meantime, here are some steps you can take to prepare:
Perform A Policy Review
The upcoming changes may impact your Personal Injury Protection Allowable Expenses coverage, however, that’s just one coverage comprised within your auto insurance policy. Prior to your policy renewal, review your current limits and coverages. Knowing your limits and coverage benefits will help to guide your upcoming Protection Allowable Expenses limit selection.
Evaluate & Protect Your Assets
When you make changes to your policy limits, there’s more to think about than cost savings. Lower coverage limits could expose you to risks such as lawsuits, medical bills, or other perils. Your savings accounts, 401k, home, or other valuable assets could be at risk without selecting the proper coverage limits.
Discuss Changes With Your Family
Coordinate time with your family to discuss how the upcoming auto no-fault policy changes can impact your spouse, children, or members within your auto policy. During the discussion, review your current coverages, and assess new coverage options. It is important that all members within your policy understand any policy changes, and the date your policy changes take effect.
Talk To An Agent
Consult with a licensed Agent before making any final decisions on your policy at (800) 875-8395
10% to 45% average savings off of the Personal Injury Protection portion of your policy only.
The Michigan mini tort law’s maximum recovery limit will increase from $1,000 to $3,000.
Maintain the current “unlimited’ coverage, or choose a lower coverage amount (subject to qualifications).
July 2021: A fee schedule will be enforced to govern medical charges from any provider providing care for auto accident victims.
New default coverage requirements of $250,00 per person/$500,000 per accident. You can elect lower limits with a waiver.
Note: Those injured in an auto accident can now sue for medical, rehabilitation and other costs. Therefore, high limits as well as umbrella liability should be considered.
Ask your licensed agent at (800) 875-8395 for options before making any final decisions!
INFORMATIONAL PURPOSES ONLY. NOT A COMPLETE LIST OF CHANGES. SEE AGENT FOR MORE DETAILS.
Subject to changes in law. March 3, 2020