Auto No-Fault Insurance Changes: What You Need To Know

You’ve likely heard about the major changes to no fault car insurance in Michigan in July 2020.

Even though that seems like a long time ago, the impact of these changes continue to change the lives of Michigan residents.

Confused about the changes? Want to find the best auto insurance coverage at the best price? Contact us today.

What Changed with No-Fault Car Insurance In Michigan?

This law reforms the previous no-fault auto insurance requirements to provide more insurance coverage options, lower rates, and strengthen consumer protections.

This is due to the State of Michigan Public Acts 21 and 22 of 2019, which went into effect on July 1, 2020.

Additionally, this law applies to auto insurance policies issued or renewed after July 1, 2020.

This law brought major changes to the unlimited Personal Injury Protection (PIP) medical benefits for the lifetime of a person injured in a car accident.

While several states do have no-fault requirements; no other state, other than Michigan, offers unlimited medical benefits.

However, these unlimited benefits make auto insurance rates in Michigan one of the highest in the country.

Confused about the changes? Want to find the best auto insurance coverage at the best price? Contact us today.

Personal Injury Coverage: What Car Insurance Options Are There?

The changes now give drivers up to six (6) options for their level of PIP coverage.

It's extremely important to know the levels and options, since your healthcare coverage plans are also a factor.

Now, auto insurance companies are required to reduce PIP statewide average medical premiums and work with a fee schedule.

This is a required cost-control measure between auto insurance companies and healthcare providers.

Additionally, the new law allows you to choose your PIP medical limit on your auto policy.

While choosing a lower level of PIP medical coverage in your auto policy won't affect what services are covered, there's a dollar limit on the medical bills your insurance company will pay.

Lastly, PIP medical coverage pays for allowable expenses such as medical care, recovery, and rehabilitation if you have injuries from an auto accident.

The Six Personal Injury Protection Options

These six (6) PIP options are:

1. Unlimited coverage
2. $500,000 per person per accident
3. $250,000 per person per accident
4. $250,000 per person per accident with exclusions (ask us about this criteria)
5. $50,000 per person per accident, which requires:
   • The applicant or named insured is enrolled in Medicaid; AND
   • Any spouse and all resident relatives have qualified health coverage, are enrolled in Medicaid, or are covered under another auto policy with PIP medical coverage.
6. No PIP medical coverage, which requires:
   • The applicant or named insured has coverage under both Medicare Parts A and B; AND
   • Any spouse and all resident relatives have qualified health coverage or are covered under another auto policy with PIP medical coverage.

As you can see, there are several options for personal injury protection in your car insurance plan.

Every customer we work with has unique needs.

Factors, such as different healthcare coverage, impact just what type of auto coverage they need.

As your local auto insurance agency, our team is ready and able to guide you through the options and find what coverage will work best for you and your family.

Confused about the changes? Want to find the best auto insurance coverage at the best price? Contact us today.

How Health Insurance and Auto Insurance Policies Connect

When reviewing your auto insurance needs, it’s important to also consider your personal risk tolerance and financial situation.

This begs the question; should you choose unlimited coverage or one of the other options? It depends.

Most importantly, and the biggest part of our job, is to make sure that you and your family are protected in the event of an auto accident and/or injury.

Confused about the changes? Want to find the best auto insurance coverage at the best price? Contact us today.

Do Michigan's New No-Fault Car Insurance Changes Confuse You?

You’re not alone! Contact us today to learn about the changes, and how we can help you get the right car insurance coverage for you.

We'll guide you through the differences to ensure that you have the best coverage at the best price.