New Michigan Auto Insurance Law

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As a result of Michigan's new auto insurance law, Michigan drivers have all-new choices and lower cost insurance options. With these new options and savings available, there has never been a better time for Michiganders to shop for auto insurance.

Governor Whitmer signed historic bipartisan auto no-fault legislation to lower costs for Michigan drivers, maintain the highest coverage options in the country, and strengthen consumer protections. The legislation creates a better no-fault system for drivers. These changes will apply to policies issued or renewed after July 1, 2020.

(LANSING, MICH) The holiday season should be a time to focus on friends and family, not to worry about your insurance coverage or falling victim to fraud. As you celebrate the s...

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Michigan's New Auto Insurance Law

With sweeping changes to Michigan’s new auto insurance law set to begin on July 1, 2020, every Michigan motorist will be required to make critically important choices regarding how best to protect themselves and their families.

Under the new law, car crash victims no longer have guaranteed lifetime coverage for medical and rehabilitation expenses unless they specifically purchase that coverage. Moreover, all drivers will face increased liability in certain situations for the medical expenses they caused others to incur.

Every driver (and passenger) in Michigan now faces an elevated level of risk and liability. Michigan drivers now have to make potentially life-altering choices with possibly dramatic financial implications. With the stakes so high, Michigan motorists should make it a priority to educate themselves and understand their options.

The biggest change for Michigan motorists is that mandatory comprehensive lifetime no-fault personal injury protection (PIP) insurance coverage has been replaced by a tiered system that allows individuals to opt-out or purchase as little as $50,000 worth of PIP coverage for medical expenses under certain circumstances. Other options include $250,000, $500,000, and No-Limit.

This option is available to anyone purchasing No-Fault Insurance and is the closest to what we all had under the Old Law. This option covers all reasonable expenses incurred for the care, recovery, and rehabilitation of the injured person. Under this Option the new law mandates premium reductions to be “an average of 10% or greater per vehicle.” These premium reductions are not guaranteed for each policyholder. This reduction only applies to the PIP portion of your insurance premium. Other portions of your premium may actually increase. The insurance company is only required to reduce its statewide average premium charges, meaning you may not get it. Insurance companies can also apply for an exemption.

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MICHIGAN’S NEW AUTO INSURANCE LAW

Category: MICHIGAN’S NEW AUTO INSURANCE LAW

MICHIGAN’S NEW AUTO INSURANCE LAW, Changes apply to policies issued or renewed after July 1, 2020. For more information about the new law, shopping for insurance, or how to file a …

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Michigan car insurance changes don’t apply to people severely injured before summer 2019

1:37 - 2 years ago

Major changes in Michigan car insurance law do not apply to people who were catastrophically injured before the summer of ...

Michigan Car Insurance Laws 2022 - Policygenius

Category: Effective July 1 The State Of Michigan Passed Sweeping Changes To Car Insurance Requirements For Drivers In The State

Learn about Michigan car insurance laws and requirements so you're informed about how much coverage you need to legally drive.

Michigan has some of the most expensive car insurance rates in the country, and the state’s extensive car insurance requirements are part of what makes rates so high.In 2020, Michigan lawmakers came together to make major changes to state car insurance laws, with the goal of reducing insurance costs for drivers in the state.

Whether you’re a Michigan driver buying car insurance for the first time or you’re checking to make sure you have the right amount of car insurance, here’s what you need to know about auto insurance laws and requirements in the Great Lakes State.

Michigan has some of the most comprehensive insurance requirements in the country. While some no-fault states have low liability requirements because drivers are expected to file a claim with their own insurance after an accident, Michigan has some of the highest liability requirements in the country along with the highest required levels of PIP coverage.

Liability coverage is the portion of your car insurance policy that pays for damage you cause to other drivers in an at-fault accident. It’s divided into bodily injury liability, which covers the other driver’s injuries, and property damage liability, which covers damage you do to their car or other property.

Drivers in Michigan are required to have a minimum of $50,000 per person and $100,000 per accident in bodily injury liability insurance and $10,000 in property damage liability coverage You may see that written out as 50/100/10. Michigan drivers are also required to have a minimum of $1 million in PPI coverage, which covers the cost of damage to physical property resulting from a car accident.

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Michigan No-Fault Insurance Law Overview | Michigan Auto Law

Information to help you understand the Michigan No-Fault insurance law and what benefits and rights you have after a car accident.

Specifically, if you are injured in a car accident covered by the Michigan No-Fault insurance law, then you will turn to your own auto insurance company for the benefits you will need to recover and begin rebuilding your life. Importantly, those benefits will pay for your accident-related medical bills and your lost wages if your injuries disable you from returning to work. Getting the help you need does not depend on and require you to sue the driver who caused your accident.

Michigan is a No-Fault state for auto accidents. Before the Michigan No-Fault insurance law was passed by lawmakers in 1973, Michigan had been a tort liability state. In 2019, the Legislature made historic changes to the auto insurance law that affect every driver, including allowing PIP Choice for the first time ever in Michigan.

To legally drive in Michigan, state law requires that No-Fault insurance is the mandatory car insurance for anyone who drives regularly in the state. If you are injured in a car accident, your auto insurance company pays for medical bills and lost wages regardless of who was at-fault for causing the car crash

Michigan has No-Fault insurance because the tort liability system that preceded it was hurting car accident victims, not helping them. Seriously injured victims were denied compensation or they were systematically under-compensated. Lengthy delays forced victims to bear devastating financial burdens.

The way Michigan No-Fault insurance works is if you are injured in a car accident, an auto insurance company pays your medical bills and lost wages regardless of whether you were at-fault. Either your own insurer or the legally responsible company will pay once you file an application for benefits.

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Michigan New Auto Insurance Law 🟢 Sep 2022

Category: Michigan New Auto Insurance Law Michigan Auto Insurance

Michigan New Auto Insurance Law - If you are looking for an easy way to get quotes then our online services are the way to go.

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Recommended Car Insurance Coverage For New No-Fault Law

Michigan drivers have an important choice to make. The new No-Fault law takes effect on July 1, 2020. Get our recommended car insurance coverage options now

Our recommended car insurance coverage for the new Michigan No-Fault law includes choosing: (1) the unlimited No-Fault PIP medical benefits option; (2) the bodily liability insurance option with $500,000 and $1 million limits; and (3) uninsured and underinsured motorist coverage with $500,000 limits.

Michigan drivers have an important choice to make. The new Michigan law takes effect on July 1, 2020. Drivers now must choose among several different medical options for PIP protection and what amount of liability (also known as bodily injury liability insurance) to purchase. Below are our attorneys’ recommended car insurance coverage options to purchase for the new Michigan No-Fault law.

For all policies issued or renewed after July 1, 2020, Michigan drivers will have to choose one of the following levels of protection for No-Fault medical benefits: (1) $50,000 if you’re enrolled in Medicaid; (2) $250,000; (3) $500,000; (4) unlimited; or (5) opt-out of No-Fault medical coverage altogether if the driver is on Medicare.

Be warned, there is a terrible amount of misinformation and very bad advice out there. For example, on Saturday, June 27, the Detroit Free Press came out with an article titled: “ How Michigan drivers can get the cheapest no-fault auto insurance rates.”

What the article leaves out is that if Medicare pays for any medical bills from an auto accident, Medicare will come after you seeking full reimbursement (this would be a very important thing to know if you have Medicare Part A and Part B and you are considering dropping all PIP medical coverage!). It also leaves out all of the medical services that Medicare does not pay for. The Freep article also seems to encourage people to not buy higher liability limits, but leaves out that under the new auto No-Fault law a person who causes a serious injury accident can now be sued for medical bills in Michigan, adding potentially millions of dollars in increased risk if you catastrophically injure someone (under our old law, you could not sue for medical bills because all drivers were insured with unlimited No-Fault to pay for all medical bills). For the few extra dollars it will cost to buy higher liability coverage to better protect you and your family, the cost is well worth it for almost everyone.

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Frequently Asked Questions

Category: (Public Acts 21 And 22 Of 2019) To Provide Insurance Coverage Options Lower Rates

Frequently Asked Questions

On May 30, 2019, Governor Whitmer signed historic bipartisan no-fault auto insurance reform legislation (Public Acts 21 and 22 of 2019) to provide insurance coverage options, lower rates for Michigan drivers while maintaining the highest benefits in the country, and strengthen consumer protections.

If you are already receiving benefits from your auto insurance policy due to injuries from an auto accident prior to the new law’s effective date, you will continue to receive those benefits regardless of the choice you make.

Michigan had the highest auto insurance benefits, but also had the highest costs. Mandatory unlimited Personal Injury Protection (PIP) medical benefits proved too expensive for many Michigan families. Some drivers who could not afford costly unlimited coverage were driving uninsured. Drivers will now have a choice to reduce their premiums for the medical portion of PIP by relying on their own health insurance for their medical bills.

To drive legally in Michigan, state law requires the purchase of no-fault automobile insurance. Driving without insurance is punishable as a misdemeanor with a fine of up to $500 and up to one year in jail. The court may also order your license suspended for 30 days or until you are able to provide proof of valid insurance.

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Michigan’s Auto Insurance Law Has Changed

No-fault automobile insurance is required by Michigan law. Every car owner must buy certain basic coverages in order to register a motor vehicle in Michigan. It is against the law to drive, …

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Choosing PIP Medical Coverage

Category: Each Auto Insurance Company Will Be Required To Reduce Statewide Average PIP Medical Premiums For Eight Years

Choosing PIP Medical Coverage

Personal Injury Protection (PIP) Choice Michigan drivers will need to choose a coverage level appropriate for their needs and budget. The new law requires that auto insurance companies and agents give policyholders forms that describe the benefits and risks of the coverage options. Drivers may also want to talk with an auto insurance agent, insurance company, or financial advisor to discuss their personal auto insurance needs. Drivers may need information from their health insurer or employer identifying individuals covered under their health insurance and a statement that the health policy does not exclude or limit auto accident injuries and has an individual deductible of less than $6,000. Medicare and Medicaid participants may need proof of enrollment.

There are six PIP medical coverage levels available to Michigan drivers. Under these limits, this amount is the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.

Up to $250,000 in coverage with PIP medical exclusion(s) Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.

Up to $50,000 in coverage Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy, Medicaid or other health insurance that will cover auto accident injuries.

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Michigan Car Insurance Laws: Everything You Need To Know

If you live in Michigan, understanding the state laws about auto insurance can help you make sure you have the right coverage to drive legally without risking your personal a-sets if an accident occurs.

Under new insurance laws that took effect in July 2020, Michigan auto insurance companies can no longer use certain types of personal information when providing policy quotes. The prohibited data includes marital status and gender, along with residential status (homeowner or renter), zip code, education level, and occupation. However, they can still look at designated areas called territories to determine each driver's geographic risk.

As mentioned above, the new law in Michigan prohibits insurance companies from using some personal data in auto insurance pricing. As a result, insurers can not use your credit score to determine the cost of your policy; however, they can still review your payment history to a-sess your risk level.

The statewide average auto insurance premium is $3096 per year, which is twice the national average of $1548. What's more, Detroit is the most expensive auto insurance city both in Michigan and in the entire United States, according to data from the Michigan Department of Insurance and Financial Services. Motor City drivers regularly spend 20 percent of their annual income on auto insurance policies that can easily exceed $6000 per year. Even New York and Los Angeles residents have more affordable auto insurance than drivers who live in Detroit.

Bankrate.com reports that all Michigan drivers must have minimum no-fault auto insurance, which comprises residual liability, property damage, and personal injury protection (PIP) policies. Drivers in Michigan can purchase other types of coverage but are not under an obligation to do so.

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New Changes To Michigan's Auto Insurance Starts July 1, 2021 - CBS Detroit

Started July 1, 2021 change to Michigan's Auto Insurance will go in effect. Policyholders will have more coverage options.

(CBS DETROIT)- In May of 2019 Governor Whitmer signed into legislation a No-Fault auto insurance reform in an effort to address high premiums, and to lower costs for Michigan Drivers. That new policy goes into effect this week.

After nearly 40 years of requiring drivers to have unlimited No-Fault medical coverage in case of an auto accident, Michigan drivers can now choose from 1 of 4 personal injury protection benefits, and for policies issued or renewed, drivers will have new coverage options to choose from.

But critics of the change coming July 1st say although insurance rates for drivers may lower, those currently receiving in-home family-provided attendant care for auto accident injuries, could see changes that will affect their care.

"We were looking at how to save money for residents of the state but we didn't really look at the cost of care for post-acute patients and when you combine those two I think there is a shortfall," said State Senator Doug Wozniak, who represents Michigan's 36th district in Macomb County.

Rep. Wozniak joined a group of protestors outside the state Capital back in June. The group made up of lawmakers and injured car survivors were concerned over portions of the new auto law.

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Personal Injury Protection - New Michigan Auto Law

All insurers must offer their customers either mid-term endorsements or the option to cancel and reissue their policies in order to capture the savings and flexibility offered under Michigan’s …

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How to deal with Michigan’s new auto insurance law

Michigan’s new auto insurance law is one many residents have been waiting for because of the lower rates, but there are complex choices drivers have to make.

To narrow down the insurance changes in the simplest way possible, there are two choices to make: How much personal injury protection one needs and can afford, and how much liability one needs and can afford.

That’s medical insurance. The state calls it “qualified medical coverage,” such as Blue Cross Blue Shield or another carrier that specifically tells you it covers auto accidents and you can opt out of PIP.

“If you do not make a choice, you will get a default level that’s higher than that of $250,000 per person, $500,000 for any injured in an accident, which have correspondingly higher premiums if you don’t go back and change it,” said Anita Fox, the Michigan Director of Insurance and Financial Services.

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Michigan Car Insurance Laws: What You Need To Know in 2022

Category: New Michigan Auto Insurance Laws

Want to know about Michigan car insurance laws? This detailed guide will help you to understand everything about auto insurance requirements in MI.

Auto insurance is a legal requirement for Michigan drivers. To comply with state requirements, drivers must have a minimum amount and type of auto insurance. A driver with insufficient Michigan liability insurance faces severe penalties, even if it is their first offense.

Whether you are a veteran Michigander or a new driver in the state, it is essential that you have a thorough grasp of Michigan auto insurance requirements. Recently, Michigan altered its auto insurance rules. The PIP coverage regulations were revised by the Michigan car insurance laws, which impact all Michigan drivers.

Michigan auto insurance laws are among the most stringent in the country. Theoretically, this implies that Michigan drivers are adequately protected against physical harm. However, you should be aware that there are gaps in coverage that might put you at danger.

Having physical damage coverage might be an excellent approach to limit risk and safeguard your car, particularly if you are traveling outside of Michigan. Before buying insurance, you should always try to compare car insurance rates online.

Drivers who have minimal Michigan liability coverage often pay the lowest rates. Nonetheless, the majority of insurance providers advise that drivers acquire greater liability coverage than is legally necessary. There is no a-surance that the minimal liability limitations in Michigan will pay the whole cost of an accident.

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Michigan Car Insurance Laws (Updated 2022) | The Zebra

Aug 11, 2022 · When someone is injured in an accident and no longer able to take care of their daily needs, attendant care helps to pay a nurse or family member for daily a-sistance. …

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New Michigan auto insurance law to become effective next month

Category: New Michigan Auto Insurance Law

The new regulations meant to lower prices for drivers in the state will become effective July 1. On Tuesday, June 23, 2020, the state Department of Insurance a

The new Michigan auto insurance law was developed in the hopes of reducing the cost of the coverage. At the same time, it is meant to help keep up the highest options available in the US. Before the law becomes effective on July 1, drivers will still be required to carry unlimited no fault coverage. However, after that point, when the new regulations go into place, drivers will have the right to choose from among different levels of coverage.

“The new law provides drivers for the first time with a choice on the level of medical coverage they want,” explained Department of Insurance and Financial Services spokesperson Zachary Dillinger. “It lowers costs while maintaining the highest level of coverage in the nation and it increases consumer protections.”

The state has tried for years to reform, tweak, or entirely overhaul its no fault system. The reason is that this level of coverage may be extensive, but it is also expensive. Drivers have consistently paid the some of the highest premiums in the country.

Most of the new regulation reforms have to do with the personal injury protection of the state’s coverage system. This has to do with the way in which medical costs are handled if someone is injured as a result of a car crash.

The Michigan Department of Insurance and Financial Services recommends that drivers whose policies renew before July 1 contact their coverage providers. This will allow the drivers and insurance companies to discuss the new Michigan auto insurance law and find out if it will be possible to benefit from the new prices ahead of time. Some insurers may take the change into account and allow customers to adapt the shape of their coverage and their premiums since there are only a few days left before the law is effective.

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New Car Insurance In Michigan 🟢 Sep 2022

Category: New Michigan Auto Insurance Law New Michigan Auto Insurance Michigan New Car Insurance Michigan Car Insurance Michigan Auto Insurance

New Car Insurance In Michigan - If you are looking for an easy way to get quotes then our online services are the way to go.

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