Michigan No-Fault Changes Part 2

auto insurance Grand Rapids MI

By now you’ve most likely heard that changes are coming to Michigan’s No-Fault auto insurance system. The effects of the new legislation, which take place July 2, 2020 are lower rates for Michigan drivers while maintaining the highest benefits in the country and to strengthen consumer protections.

This is the second of a three part series to help understand what is changing and how those changes benefit you.

While we strongly urge you to consult with a licensed insurance agent prior to making any changes below is some information to help clarify what is changing and the impact those changes will have on your auto policy:

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 (currently provided on all auto policies)
  • 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)

The Michigan Catastrophic Claims Association (MCCA) will also lower the per vehicle assessment to $100 for the period July2, 2020-June 30, 2021. This reflects a 55% reduction from this year’s $220 assessment per vehicle. This assessment will only be applied to those that choose unlimited lifetime personal injury protection (PIP) benefits. Additional information can be found here http://www.michigancatastrophic.com/

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.

Please consult a licensed insurance agent prior to making changes to your existing coverage.

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