The issues associated with insurance have always been a center of attention in Michigan because the state government passed a law meant to favor ‘the driver’, tagged as a no-fault car insurance system. In this law, the government’s aim in this policy was to ensure that the bearing cost on the driver isn’t much after being sued by the victims.
History has shown that Michigan has the highest use of autos in the United States; as a result of this, drivers have always been advised to get insured, in order to be protected by the insurance company whenever an accident occurs. Under the insurance scheme, there is a package is called PIP, from which drivers get “until the end of time” medical benefits when involved in an accident. The resultant effect of this law was that car insurance became expensive, hence negatively received by critics. Florida Advocates a PIP Insurance Attorney North Miami who fights for the rights of the consumer.
In an effort to address the high premiums and to lower costs, Michigan Gov. Gretchen Whitmer signed no-fault auto insurance reform legislation on May 30, 2019. Drivers in Michigan have new coverage options to choose, from policies issued or renewed after July 1, 2020. As a result, you may be able to reduce your premiums based on your coverage selections.
What to expect after July 1
Old and New Personal Injury Protection (PIP)
Old Pip: The only option was a lifetime medical expense and salary payment for 3 years, provided that you can’t work.
New Pip: It has variables.
- Unlimited insurance package
- $250,000 insurance package per individual accident
- $500,000 insurance package per individual accident
- $250,000 insurance package per individual with exclusions: you will be excluded from the insurance medical coverage if you have recognized health coverage.
- $500,000 insurance package per individual accident: you must be registered in Medical aid (Medicaid) and must meet other requirements.
- You can also opt-out if you have option A & B
You will be on default if you’re yet to enroll in any of these options.
Old and New Personal Protection Insurance (PPI)
Before: The insurance company pays up to $1 million in protection coverage if there’s damage to someone’s property.
After: The coverage remains the same.
Old and New: Residual Bodily Injury and Property Damage (BI/PD)
Old: The following requirements were compulsory:
- $20,000 for a person killed or injured.
- $40,000 for a person each killed or injured
- $10, 000 for damaged property
New: This is taken into effect from July 1, 2020, will be:
- $50,000 for a person killed or injured.
- $100,000 for a person each killed or injured.
- $10, 000 for damaged property in another state.
You are also privileged to buy above the aforementioned.
You have the option to buy higher amounts of liability insurance.
Other Changes to be enforced after July 1, 2020?
The new law establishes a unit that will be in charge of investigating criminal and fraudulent related matters with regards to insurance and financial markets. The MCAA will be responsible for; providing an annual report to Michigan Legislature, make a publication on it that must be posted on their website and is subjected to audit by the Michigan Department of Insurance and Financial Services every three years. Before the approval of the rate and policies of car insurance, companies are obliged to tender their policy with DIFS for approval before engaging customers.
Note, this article is provided by the SEO company Fort Lauderdale and provides a solid understanding of PIP and PPI insurance. Contact either Florida Advocates or GE Light Insurance for more information.