Macomb County Collision Shop Explains How Michigan Car Insurance Will Change in 2020
On July 2, 2020, Michigan’s new no-fault auto insurance reform law is giving drivers more choices on their auto insurance coverage which could result in lower premiums. Instead being required to carry unlimited Personal Injury Protection (PIP) benefits or no-fault benefits, Michiganders will soon be able to choose their level of PIP coverage.
What Are the Current PIP/No-Fault Benefits?
Michigan’s no-fault auto insurance law has been in place since 1973 and was designed to compensate accident victims for medical costs and lost income.
What specifically do these PIP or no-fault benefits include? Accident victims who are unable to work as a result of the accident can be compensated for up to 85% of their gross salary before the accident. PIP benefits also cover unlimited medical benefits for the lifetime of the injured person when those injuries result from an auto accident. There are also replacement services that cover the costs for individual to carry out duties that you may not be capable of because of your motor vehicle accident. For instance, you may require help with home maintenance or errands such as grocery shopping.
For those involved in a serious, life altering car accident, these unlimited PIP benefits can be a godsend to the accident victim. However, there have been challenges with the no-fault system, such as the rising cost of auto insurance for Michigan drivers. According to the National Association of Insurance Commissioners (NAIC), Michigan has the fourth most expensive car insurance in the country.
What Can Michiganders Expect with the No Fault Reform?
One major change is that drivers are no longer required to carry unlimited PIP benefits on their policy. Drivers are welcome to keep the unlimited coverage but now will be able to choose from different levels of Personal Injury Protection coverage.
Also insurance companies must reduce PIP premium rates, and guarantee that they will be reduced for eight years. The reduced amount will depend on the level of PIP coverage that a driver selects.
- Unlimited coverage would receive on average a 10% reduction
- $500,000 in coverage would receive on average a 20% reduction
- $250,000 in coverage would receive on average a 35% reduction
- $50,000 in coverage would receive on average a 10% reduction
Remember that savings alone should not determine your choice of PIP benefits. Talk to your insurance agent about which PIP coverage is right for protecting you and your family.
Looking for a Macomb County Collision Shop?
Pole Position Auto Body is an auto body repair shop that has been serving Macomb County, MI for over 30 years.
If you have been involved in an accident, our highly qualified technicians will restore your vehicle to it’s pre-accident condition in the quickest turnaround time possible – almost 3 days quicker than the average repair facility.
We are considered ESSENTIAL during these uncertain times and the Pole Position Auto Body family is here for you!