Michigan Pip Law Changes

Facebook Share Twitter Share LinkedIn Share Pinterest Share Reddit Share E-Mail Share

For policies issued or renewed after July 1, 2020, insurance companies are subject to the following overall statewide PIP coverage premium reductions: An average 45% or greater reduction per vehicle for the $50,000 PIP option An …

Preview

Posted in: Insurance Law, Insurance LawShow details

Governor Whitmer signed historic bipartisan auto no-fault legislation to lower costs, maintain the highest coverage options in the country, and strengthen consumer protections. MICHIGAN’S NEW AUTO INSURANCE LAW Changes apply to policies issued or renewed after July 1, 2020.

1. File Size: 1MB
2. Page Count: 2

Preview "PDF/Adobe Acrobat"

Preview

Posted in: Insurance Law, Consumer LawShow details

With the recent changes to Michigan no-fault law, drivers are no longer required to carry unlimited PIP coverage. When the changes started going into effect in July 2020, one of the biggest changes Michigan drivers are seeing is the ability to choose their level of PIP coverage. Drivers can now continue to have unlimited PIP coverage if they choose, or they can opt for …

Preview

Posted in: Law CommonsShow details

Michigan Auto Insurance Reform FAQs – Frequently Asked

1. Michigan has long been unique nationally allowing for unlimited PIP benefits. While individuals may keep unlimited PIP coverage under the new law, starting July 2020, S.B. 1 will now permit individuals to purchase PIP plans with different coverage limits. In general, subject to certain qualifications and criteria, S.B. 1 will now allow individuals to purchase PIP plans with policy limits of $500,000.00, $250,000.00, or $50,000.00. The new law also allows certain individuals to opt-out of PIP coverage altogether. Specifically, S.B. 1 provides, in part, that individuals may “elect not to maintain coverage for personal protection insurance benefits” if they have “qualified health coverage” which is defined, in part, as “[o]ther health or accident coverage” that “does not exclude or limit coverage for injuries related to motor vehicle accidents.” Likewise, under S.B. 1 individuals with “coverage under parts A and B of the federal Medicare program”may also opt-out out of PIP.

Preview

Posted in: Insurance Law, Form LawShow details

Michigan Auto Insurance Reform Michigan auto insurance reform has brought about sweeping, fundamental and unprecedented changes to Michigan’s No-Fault law that affect every driver and car accident victim in this state. The changes include PIP choice, opt-outs, attendant care limits, a fee schedule and increased bodily injury liability coverage.

1. Estimated Reading Time: 11 mins

Preview

Posted in: Insurance Law, Form LawShow details

It only represents a reduction in the cost of PIP coverage. Under the new law, the average reduction per vehicle for the premium rates for PIP coverage in effect on May 1, 2019 are the following: $50,000 PIP coverage limit – 45% reduction $250,000 PIP coverage limit – 35% reduction $500,000 PIP coverage limit – 20% reduction

Preview

Posted in: Law CommonsShow details

Starting July 2, drivers can choose a different amount of PIP coverage offered at different prices. Drivers who chose the lowest option, $0 …

Preview

Posted in: Law CommonsShow details

The new No-Fault law has increased the maximum limit for Mini Tort claims in Michigan from $1,000 to $3,000, effective immediately. Higher Liability Limits. Now, drivers across Michigan must carry a liability bodily injury insurance with a minimum amount of $50,000 for one person and $100,000 for two or more people. Suing for Excess Expenses

Preview

Posted in: Insurance Law, Insurance LawShow details

This amendment apparently changes the current no-fault law which generally provides that accidents occurring outside of Michigan are compensable under the No-Fault Act only if the injured person was the named insured, spouse of a named insured or a relative of either domiciled in the same household under a Michigan no-fault policy. The amended statute, at …

Preview

Posted in: Law CommonsShow details

Michigan no-fault order of priority guide. December 2019 . Description and Disclaimer – This material is based on the recently enacted Michigan Public Acts 21 and 22 of 2019 and is provided for informational purposes only. It does not provide any coverage. The material herein represents our current understanding of the law, which may be subject to change if additional …

Preview "PDF/Adobe Acrobat"

Preview

Posted in: Form LawShow details

PIP Choice – For more than 40 years, the Michigan No-Fault insurance law has required drivers to purchase “unlimited” PIP medical benefits which would cover any and all car accident-related medical care and treatment for as much and as long it was “reasonably necessary” for the injured person’s care, recovery or rehabilitation. Under the new law, after July 1, 2020, drivers must

Preview

Posted in: Insurance Law, Insurance LawShow details

The new Michigan No-Fault law would increase those minimum limits to $50,000 and $100,000 respectively. A new “default” residual bodily injury limit of $250,000 and $500,000 will be offered to

Preview

Posted in: Insurance Law, Insurance LawShow details

That’s because PIP is only one part of Michigan’s mandatory insurance coverage. The new law does promise 8 years of savings for each new tier of PIP coverage: 45% for drivers with Medicaid with $50,000 in PIP coverage 35% for $250,000 in PIP coverage 25% for $500,000 in PIP coverage 10% for those who elect to continue “no limit” PIP coverage

Preview

Posted in: Insurance Law, Form LawShow details

This is the coverage required by law in Michigan prior to No-Fault Reform. 5 $250,000 PIP Exclusion: Individuals who qualify for this option will not be charged a PIP premium by their auto insurer. If an individual chooses this option, and they are injured in an automobile accident, their medical benefits will be covered by their Qualified Health Coverage (QHC) provider.

Preview

Posted in: Insurance Law, Form LawShow details

This new set of laws is not going to be the end of the needed reforms that will try to balance the important benefits of no-fault auto insurance with affordable prices. There are quite a few changes of which drivers will need to be aware. Options for No-Fault PIP Coverage With the passing of this new law, Michigan drivers are not required to

Preview

Posted in: Insurance Law, Form LawShow details

Michigan’s Auto No fault Reform Law changes the order in which an injured person collects PIP benefits and who can be covered. Drivers, passengers or pedestrians are no longer provide PIP coverage unless they are the named insured, the named insured spouse or a family member living with them. Otherwise, Michigan residents will be given PIP benefits through the …

Preview

Posted in: Form Law, Family LawShow details

The new law increases the minimum PIP coverage amounts and adds a rule: As of July, Michigan drivers must carry auto insurance that provides up to $50,000 for a person injured or killed in an accident. The new rule also requires carrying up to $100,000 in PIP coverage for a single accident resulting in multiple injuries or fatalities.

Preview

Posted in: Insurance Law, Insurance LawShow details

Please leave your comments here:

Related Topics

New Popular Law

Frequently Asked Questions

How does michigans new no fault law affect pip coverage?

On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage. Under the new plan, drivers will be able to choose from up to six options for Personal Injury Protection coverage.

Does michigan have pip choice auto insurance?

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. What is Michigan No-Fault insurance?

Do you still have to pay michigans unlimited pip fee?

But those who opt for less than unlimited medical coverage will no longer have to pay the fee, at all. The new law ends Michigan's status as the only state in the nation where motorists have been required to purchase unlimited PIP coverage.

When do pip options change in michigan?

Governor Gretchen Whitmer signs the law changing PIP options effective July 1, 2020, more details on other changes can be found at the Michigan DIFS site. After this date, the only people who will be eligible for benefits through the MCCA after an accident will be the people who chose the “unlimited” option on their auto policies.

Most Popular Search