Beginning in 2020, Michigan drivers will be able to select their preferred level of PIP, the coverage that pays for medical coverage if you are injured in an auto accident. Based on your eligibility and individual needs, you’ll be able to select from the coverage options available or you may be able to waive PIP medical coverage altogether.
Here is a summary of PIP options under Michigan’s new auto insurance law:
- Unlimited
- $500,000
- $250,000
- $50,000 (This option is available if the insured is enrolled in Medicaid and their spouse and any relative of either who resides in the same household has qualified health coverage, is enrolled in Medicaid or has PIP medical coverage under another Michigan policy.)
- $0 – Waive PIP medical coverage on auto policy (This election by an insured to not maintain PIP medical coverage is available if the insured has Medicare and if their spouse and any relative of either that resides in the same household have qualified health coverage or have PIP medical coverage under another Michigan policy. Please see the new law for complete details.)
Because Michigan’s new auto insurance program will no longer be purely no-fault, it is more important than ever to have adequate Bodily Injury (BI) coverage. This coverage addresses liabilities paid by the driver at fault when an accident causes serious injuries / death. Premiums are expected to rise for this coverage as minimums are increasing, and many policyholders will increase their coverage:
- The BI minimum limits are increasing from $20,000/$40,000 to $50,000/$100,000
- A new default BI coverage is established at $250,000/$500,000
How we can help
We will be discussing the options with our customers to help them choose the coverage that is best for them. We will help everyone make an informed decision. These selections need to be done in advance of your renewal starting with policies renewing on or after July 2, 2020.
