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.