Michigan Auto Insurance Law Reform
What Does This Mean For You
On July 2, 2020, many changes to the existing no-fault auto insurance law in Michigan took effect. Notably, whereas Michigan drivers previously had unlimited medical benefits for the lifetime of the injured person when those injuries resulted from an auto accident, beginning on July 2, 2020, Michigan drivers will now have a choice in their level of PIP (Personal Injury Protection) coverage.
What does this mean for you?
This means that you must assess your situation and decide whether making a change to your PIP coverage is the right choice for you. Consider that lower coverage could expose you to medical bills or lawsuits. If you have a 401k, savings accounts, a home, or other valuable assets, they could be at risk if you choose to lower your PIP choice level. It is for this reason, that if possible, the best option would be to keep your unlimited Personal Injury Protection Allowable Expenses coverage limit and you will have the maximum protection under Michigan law.
The different PIP coverages now available are as follows:
COVERAGE LEVEL
| Keep Unlimited PIP Benefit (current law) |
| $500,000 PIP Benefit |
| $250,000 PIP Benefit |
| $50,000 PIP Benefit (must be enrolled in Medicaid) |
| "Medicare Opt-Out(must be enrolled in Medicare Part A & B)" |
| "Qualified Health Coverage Exclusion(all members of the household have other health/accident coverage that does not exclude or limit coverage for injuries related to an auto accident and has an annual deductible of $6,000 or less per individual) " |
Keep in mind that if you choose anything other than keeping your Unlimited PIP benefits, you may open up yourself and your household to higher risk in the event of an auto accident.
Starting in July 2020, the new minimum BI (Bodily Injury) coverage options are as follows:
- Up to $50,000 for a person hurt or killed in an accident
- Up to $100,000 for each accident if several people are hurt or killed
- If there is a valid Michigan No-Fault policy in place, coverage applies to the injured party and passengers involved in the auto accident as long as it occurs in the United States or Canada (must be named insured or spouse/resident relative).
Additionally, there will be options to elect higher BI coverage of:
- $250,000 / $500,000 or
- $500,000 / $1,000,000 if you choose.
BI coverage applies to pain and suffering of the victim of an automobile accident. This differs from the coverages afforded by Michigan PIP Choice.
Attendant Care and Fee Schedule Changes
On July 2, 2021, the No-Fault auto insurance law in Michigan changed once again.
Auto insurance companies are not obligated to pay for more than 56 hours per week for in-home, family-provided attendant care provided after July 1, 2021. This limitation in the No-Fault law does not apply to attendant care provided by a nurse from a commercial agency or in a residential facility.
Also, starting July 1, 2021, doctors, hospitals, clinics, medical providers and other persons who treat and care for car accident victims have to conform their charges for services to a new Medicare-based fee schedule.
The above changes are currently being challenged in the Courts. We will continue to update our website to reflect any changes as they occur.”
LaKritz Law Is Here For You
The changes brought about by Michigan No-Fault insurance reform are both complex and far-reaching. The changes require the skill, experience and knowledge of an experienced lawyer who understands all of the intricacies of the new Michigan No-Fault Law. LaKritz Law lawyers possess the superior skill, experience and knowledge necessary to help you if, you, a family member or friend, are injured in a motor vehicle accident. Call the Lawyers at LaKritz Law!