The Recent Changes in Michigan’s New Auto Insurance
Posted: Tuesday, March 9th, 2021 at 8:12 pm
The Recent Changes in Michigan’s New Auto Insurance
Back in 1973, Michigan introduced a no-fault auto insurance system through the state. It ensured that regardless of who causes an automobile accident, you can file a claim. Through these laws and policies, Michigan strives to lower costs by eradicating charges made against other drivers.
Fast forward to July 1, 2020, Michigan renewed and issued new policies. Now, if you live in Michigan and are getting insurance for the first time, you’ll need to carry out in-depth research regarding the state’s fault laws. After all, enrolling for the ideal no-fault car insurance plan can easily mean the thin line between efficient protection or being at risk of a lawsuit. Here, we discuss all there is about the new laws:
What is a No-fault State?
Automobile owners all possess insurance to cover any injury or damage inflicted to them instead of paying to the other driver. No-fault state refers to filing a claim through your insurance despite who may have caused the accident. Besides this, no-fault accident law usually requires the driver to boast personal injury protection (PIP) coverage in their auto insurance policy.
How did Michigan Auto Insurance Change on July 1, 2020?
Here’s what Michigan state changed as of July 1, 2020:
Personal Injury Protection (PIP)
Michigan laws made it essential for all motor vehicle owners to possess the unlimited lifetime medical benefits for PIP. According to the law, your medical expenses —due to car accidents were fully paid. Not to mention, PIP covers bonus expenses like lost wages because of inability to work as a result of car accidents and swapping services you’re unable to perform for at least three years.
Now, however, PIP coverage is available in an array of different packages. These are:
An unlimited overage per person per accident option that offers similar coverage as previous laws and policies offered. Any medical expense deemed as reasonable is covered for a lifetime.
Two packages offering either coverage up to $250,000 or $500,00 per person per accident
An ‘up to $250,000 alongside exclusions in coverage per person per accident.’ Here a couple or all drivers may be eliminated from your PIP coverage. For instance, auto injuries cannot be excluded, nor can you deduct an amount higher than $6,000.
You must register for Medicaid while satisfying various law requirements to enroll for the ‘Up to $50,000 in coverage per person per accident.’
Getting a ‘No PIP’ coverage requires you to be enrolled in Medicare Part A and B alongside meeting plenty of state eligibility requirements.
Personal Protection Injury (PPI)
Since its establishment, the Personal Protection Injury coverage pays at least a million dollars your car may inflict on someone else’s property. A good example is if you collide with someone’s parked vehicle or drive into a fence. Luckily, Michigan State did not make any changes in this coverage plan.
Residual Bodily Injury and Property Damage
The Residual Bodily Injury and Property Damage coverage requirement cover legal defense expenses and judgments relevant to any suffering and financial damage caused due to road accidents.
Before July 1, it was vital you either have $20,000 per person injured or killed in car accidents, at least $40,000 per accident for people killed or hurt, or up to $10,000 for the destruction caused to a property in a different state.
However, now the payment regulations and criteria have changed. Now you pay $50,000 per person killed or injured, which can go up to $100,000, depending on the loss level. You may pay $10,000 for the destruction of properties in a state other than Michigan.
Sources
http://www.michigancatastrophic.com/
https://www.coverage.com/insurance/auto/what-does-a-no-fault-state-mean-for-auto-insurance/
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