Michigan Auto Insurance Changes – What Buyers Need to Know

Join Grand Rapids auto accident attorney, Tom Sinas, in this Fox 17 “Know the Law” special series highlighting the Michigan auto insurance changes and new purchasing decisions.

By now, almost everyone in Michigan knows that our state’s auto insurance law was reformed last year. The reform introduced vast and sweeping changes to the system as we know it. Many of those changes, however, haven’t impacted consumers yet, but are about to do so. For auto insurance policies renewing after July 1, 2020, consumers will need to make these new purchasing decisions.

In the weeks ahead, Tom Sinas will cover many of the significant Michigan auto insurance changes and consumer purchasing options.

Part 1 – Tom provides an introduction to auto no-fault coverage and liability coverage. Understanding these two coverages is the foundation you need to make an informed decision about your new auto insurance options.

Part 2 – Tom covers new consumer PIP choice options under the reformed no-fault law.

Part 1 – Introduction to Auto No-Fault and Liability Coverage

Auto No-Fault Coverage

At its core, auto no-fault insurance is the coverage consumers purchase to take care of their medical needs after an automobile accident. Dating back to the 1970s and the enactment of the Michigan Auto No-Fault Act, everyone entitled to no-fault benefits had uncapped no-fault coverage, until now. This uncapped no-fault coverage wasn’t limited in time or by dollar amount. This meant that, up until now, anyone injured in a motor vehicle accident and who was entitled to no-fault benefits could access whatever necessary and reasonable care, rehabilitation, and recovery treatment and resources they needed to recover, paid for by their no-fault PIP benefits

Auto Insurance Changes in Michigan

Many of the new no-fault policies people will have to choose from will limit that amount of no-fault coverage.

Introduction to Liability Coverage

Liability insurance is the coverage you purchase to protect yourself financially if you cause a car crash hurting someone else. Under the new law, people will also have to choose liability coverage limit options. These liability insurance options are all the more important now because, for the first time since the early 1970s, at-fault drivers can be held responsible for a victim’s medical expenses.

Part 2 – PIP Choice Options

In the second installment of this “Know the Law” mini-series, Tom talks about the new PIP choice options under the new auto insurance law. For the first time since the 1970s, Michigan consumers aren’t guaranteed lifetime coverage for medical and rehabilitation expenses and must choose the level of coverage they want.

The following levels of coverage are available to every consumer in Michigan:

  • Lifetime (Uncapped) PIP Benefits- Consumers can still opt for the same level of coverage that was offered under the original Auto No-Fault Act. 
  • $500,000 PIP Benefits – Caps injured auto accident victims at $500,000 in medical and rehabilitation expenses.
  • $250,000 PIP Benefits – Caps injured auto accident victims at $250,000 in medical and rehabilitation expenses. 

As mentioned in both segments, our firm has created “Making Smart Choices: A Summary Guide to the NewAuto No-Fault Law.” In this brochure, which is freely accessible to all, we dive deeper into these PIP choice options and offer our best advice for choosing the safest level of PIP coverage for you and your family. Please feel free to read it, share it with your friends and family, and use it as a resource in the weeks and months ahead to educate yourself on your new auto insurance options.

Please stay tuned as we update this page with upcoming segments on this very important and timely topic!