Navigating Michigan’s New Car Insurance Laws
Michigan recently underwent drastic changes to its automobile insurance laws. Despite general guides and notices about the change, many people are left confused about how the reform will impact their right to recovery after a Michigan car accident. For 50 years before the change, Michigan followed the no-fault auto insurance system. Lawmakers framed the no-fault insurance system to allow accident victims a straightforward and efficient way to file claims and recover damages. Further, the law was designed to address the growing number of personal injury lawsuits. Under this framework, Michigan motorists generally carry unlimited medical coverage to cover expenses if they experience injuries in a car accident.
Under the new system, insurance companies must provide motorists with more choices that may fit their specific needs more adequately. Before the change, Michigan drivers had to carry unlimited Personal Injury Protection (PIP) insurance coverage. PIP coverage is medical and rehabilitation insurance benefits that an accident victim can claim.
Now, the law allows Michigan motorists to keep unlimited PIP coverage or choose from six other options. The other options include the following:
- $500,000 PIP Benefit, a 20% PIP reduction, results in about $50 in yearly premium savings.
- $250,000 PIP Benefit, a 35% PIP reduction, results in about $87.50 in yearly premium savings.
- $50,000 PIP Benefit, which only applies to those enrolled in Medicaid, is a 45% PIP reduction, results in about $112.50 in yearly premium savings.
Medicare Opt-Out and the Qualified Health Coverage Exclusions, are only available for eligible participants; it is a 100% PIP reduction, and saves approximately $250 a year.
Additionally, minimum bodily injury liability coverage increased, and insurance companies will provide policyholders with more options at each renewal. Further, the law will allow insurance companies to use outside non-driving factors to set insurance rates. The additional options allow for a small amount of yearly savings but provide significantly less protection. There are some additional protections if an injury victim experiences costs upwards of $580,000.
Michigan drivers should understand three additional avenues for relief through a personal injury lawsuit despite these changes. Injury victims can
- File a lawsuit against the at-fault driver for pain and suffering
- File a lawsuit against the at-fault driver for excess, wage loss and medical benefits
- File a lawsuit against the at-fault driver for vehicle damage repair costs
Although the law was passed in 2019, most of the changes are being staggered. Some went into effect last year, and others won’t be final until this summer.
Contacting a Michigan Car Accident Attorney for Immediate Assistance with Your Accident Claim
If you or someone you love has suffered injuries in a Michigan car accident, contact the dedicated personal injury lawyers at the Neumann Law Group. Our attorneys handle various Michigan personal injury claims such as those arising from motor vehicle accidents, slip and falls, product liability, medical malpractice, and wrongful death. Our skilled and knowledgeable attorneys keep up-to-date on all relevant legal changes that may impact Michigan injury victims’ rights. Through our representation, we have recovered significant amounts of compensation on behalf of our clients. Contact our office at 800-525-6386, to schedule a free initial consultation with an attorney on our team.