For the first time in almost 50 years, the state of Michigan is making major changes to its auto insurance laws. While policy-holders have been required to purchase unlimited lifetime medical coverage previously, starting in July 2020, Michiganders will be able to choose the level of coverage they opt-in to.
The Michigan Auto Insurance Reform is a law that allows people to choose Personal Injury Protection (PIP) coverage and increase state minimums for Bodily Injury coverage, Uninsured Motorist coverage, and Underinsured Motorist coverage.
Here’s everything you need to know about the change:
Medical Coverage Options
As a Michigander, you will be able to choose the level of medical coverage under the PIP portion of an auto insurance policy. The PIP medical coverage levels available to you include:
- Unlimited coverage per person per accident
- 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)
Under Michigan’s new auto insurance law, each auto insurance company will be required to reduce statewide average PIP medical premiums.
- An average 45% or greater reduction per vehicle for the $50,000 PIP option
- An average 35% or greater reduction per vehicle for the $250,000 PIP option
- An average 20% or greater reduction per vehicle for the $500,000 PIP option
- An average 10% or greater reduction per vehicle for the unlimited PIP option
For more information, visit the Michigan Department of Insurance and Financial Services, click here
Michigan First Insurance Agency is dedicated to saving you time and money, and helping you navigate the changing environment. Our team will do the research and present you with the best options so you can make a decision that works for you. Starting in July 2020, our members will be able to save up to 38%* based on the chosen coverage. For more information, call 844.788.0818 or visit the website for a free quote.
*Figure of $2,879 or 38% is based on an average of customer-reported savings from the previous 12 months, compared to their premiums before switching. Average savings includes all single policy and multiple policy auto and home insurance premiums. Your savings may vary. Not all products, coverages and discounts are available in every state. Restrictions, exclusions, limits and conditions apply.
Available insurance products are not deposits of Michigan First Credit Union and are not protected by any type of deposit insurance, are not obligations of or guaranteed by Michigan First Credit Union or its affiliates, and may be subject to risk. Insurance products are not insured or guaranteed by Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States. Any insurance required as a condition of the extension of credit by Michigan First Credit Union need not be purchased from our Agency but may, without affecting the approval of the application for an extension of credit, be purchased from an agent or insurance company of the customer’s choice.