Understanding the Michigan No-Fault Auto Reform
Michigan is known for many things - its beautiful lakes, rich sports history, and pioneering the automobile industry, among many things. They're also known for being one of the 12 states in the U.S. that have no-fault auto insurance in place.
Since 1973, all Michigan auto policies had to provide unlimited Personal Injury Protection medical coverage. This means that if you qualified for PIP benefits because you were hurt in an automobile accident, you could receive lifetime medical benefits for treatment related to your care, recovery, or rehabilitation.
In May 2019, Michigan Governor Gretchen Whitmer signed a new law changing the way Michigan sees no-fault auto insurance that goes into effect July 2, 2020.
What is changing?
If you live in Michigan, ultimately you now have a choice that could give you some savings when it comes to your auto insurance. While you can still choose to keep the unlimited Personal Injury Protection medical coverage that you're used to, you also have the opportunity to select from five additional options when your insurance policy renews:
- $500,000 of PIP medical coverage - covers auto accident medical expenses up to $500,000.
- $250,000 of PIP medical coverage - covers auto accident medical expenses up to $250,000.
- $250,000 of PIP medical coverage with PIP medical exclusion(s) - must meet eligibility requirements.
- $50,000 of PIP medical coverage - covers auto accident medical expenses up to $50,000 - must meet eligibility requirements.
- Opt-Out of PIP medical coverage - must meet eligibility requirements.
So what do you need to do?
While you won't need to take any action until it's time to renew your policy, there are plenty of things you can do to prepare in the meantime.
Review your policy. The new law directly impacts your Personal Injury Protection medical coverage, but it's important to understand that it is just one of the coverages that are included in your auto insurance policy. Make sure you are familiar with all of your coverages and current limits to help you make an informed insurance decision. It's also a good idea to review what medical coverage is included by your personal health insurance for injuries sustained in an auto accident.
Talk with family. If you have a spouse or kids, you likely aren't the only one that's impacted by this new reform. Talk your plans over with your family so everyone understands the new coverage moving forward.
Contact your agent. If you have questions, set up a time to meet with your independent agent before your policy renews.
For more information on the Michigan No-Fault Auto Reform, visit our FAQ resource center.
You never know when you might get in an auto accident — or who the other driver will be. According to the Insurance Research Council, one in seven drivers doesn’t carry auto insurance. If your car is hit by one of those drivers, it could mean substantial costs to you.
That’s where uninsured motorists and underinsured motorists coverage come in. They often are built right into your auto policy, although the coverage requirements vary by state.
As safer at home guidelines begin to lift in some U.S. states, it's a welcomed sigh of relief for many. While you may be excited to return to business as usual, it's important to remember that it won't be "business as usual" right away.
Umbrella coverage is aptly named — it gives you added coverage on top of your personal insurance (like homeowners, auto, watercraft, or motorcycle). But how does it relate to you and your current insurance policy? Here's a basic overview to help you understand the coverage.
This year our company celebrates 120 years of serving policyholders. What started in Julius Bubolz’s farmhouse has grown to become a property and casualty insurance company with coverages for businesses, homes, autos, farms, agribusinesses, nonprofits, and special events in 12 states.
The time to prepare for sickness is before germs hit your team. Illnesses can happen anytime, but flu season generally peaks between December and February, although it can stretch from October through May. Consider how you canprevent an outbreak and how you can respond quickly to limit the impact and costs to your business.