Following Michigan’s historical auto insurance reform, many consumers faced uncertainty about their coverage limits. If someone suffers injuries in a Michigan auto accident, the state’s Personal Injury Protection (PIP) medical coverage pays for the medical care, recovery, and rehabilitative treatment. Before the change, Michigan Assigned Claims Plan (MACP) provided coverage to uninsured non-motorists, like bystanders, pedestrians, and passengers. The new insurance laws cap coverage at $250,000 for claims commencing July 2, 2020. However, uncertainty prevailed among uninsured non-motorists who suffered injuries between the law’s enactment on June 11, 2019, and the effective date of July 2, 2020.
Citing consumer protection concerns, the Michigan Department of Insurance and Financial Services (DIFS) issued an order that required MACP to provide unlimited PIP medical coverage to those who suffered injuries before the July 2020 effective date. According to a recent report, the agency that administers the MACP filed a lawsuit asking the Court to overturn the order. After the Court ruled to uphold the order, the The Michigan Automobile Insurance Placement Facility (MAIPF) filed an appeal. However, the appeal was dropped after DIFS reached a settlement that allows unlimited PIP coverage for uninsured vehicle occupants and pedestrians who suffered injuries before the July 2020 implementation. The DIFS director explained that a premature implementation could have seriously affected the livelihood of many Michiganders.
Under the new PIP coverage options, drivers must choose the coverage that pays for medical care if they are in an accident. In return, the law requires insurance companies to reduce the PIP medical portion of premiums based on the policyholder’s choice. There are six levels available, including unlimited coverage, up to $500,00 in coverage, up to $250,000 in coverage, up to $250,000 in coverage with PIP medical exclusions, up to $50,000 in coverage, and PIP medical opt-out.
However, in choosing an appropriate policy, lawmakers and safety agencies urge individuals to consider an accident’s financial impact on their livelihood. To effectively choose the appropriate coverage, the law requires insurance companies to provide policyholders with detailed forms that outline the benefits and risks associated with the coverage options. In some cases, consumers may need to provide proof of coverage from their employer or health insurer. An attorney can assist injury victims in understanding the best way to recover damages after a Michigan accident.
Have You Suffered Injuries in a Michigan Car Accident?
Contact the Neumann Law Group for assistance if you or someone you love has suffered injuries or died in a Michigan car accident. The accident lawyers at our office have extensive experience obtaining favorable outcomes for Michigan injury victims and their families. The attorneys keep up-to-date on all the relevant legal changes that may impact the communities we represent. Our firm handles Michigan claims involving car accidents, boat accidents, catastrophic injuries, motorcycle accidents, premises liability, pedestrian accidents, product liability, and wrongful death. Damages in these cases typically include payments for medical expenses, ongoing treatment, lost wages and benefits, and pain and suffering. Contact our office at 800-525-6386 to schedule a free initial consultation with an attorney on our team. We accept all cases on a contingency basis, meaning you won’t pay any legal fees unless we can recover compensation on your behalf.