Most of us know about and have automotive insurance, but how much do you really know about your policy? In 2019, Governor Whitmer signed historic legislation regarding auto insurance to provide Michigan drivers with the best coverage for lower costs. But what does that actually look like? Many times, it takes an accident or incident for us to find out just what our insurance covers. We’ve partnered with Brian Lane Insurance to give you the best possible information about auto insurance so you can be informed and smart about making decisions when it comes to your coverage.
When did the new law go into effect, and why did it change?
On July 1, 2020, all newly issued or renewed auto insurance policies experienced the change. The reason for the change was because Michigan drivers had the best auto insurance coverage but it came at the highest cost to drivers. This was causing many people to drive uninsured, simply because they could not afford the cost of auto insurance.
How does the new law save me money?
The new law has three ways to reduce costs to Michigan drivers:
- Drivers get to choose a level of coverage for Personal Injury Protection (PIP).
- Insurance companies are required to reduce their average medical premium rates.
- There are new balances between insurance companies and health care providers to make the PIP more affordable for drivers.
What is Personal Injury Protection (PIP)?
If you are hurt in an auto accident, PIP will pay all reasonable and necessary medical expenses for your lifetime up to the amount you selected with your policy. PIP will also pay wage loss and replacement services for up to three years after the date of the accident.
The new law allows you to select your PIP medical limit on your auto insurance policy. This selection covers all medical care, recovery, and rehabilitation if you have injuries from an auto accident. There are various levels of PIP medical coverage you can select with your auto policy.
How can I choose which level of PIP is right for me?
By speaking with your insurance provider, they will be able to walk you through which level of coverage is appropriate for you. If you do not select a level of PIP, your policy will default to Unlimited PIP coverage. This is the highest level available.
