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Virtual town hall meeting held to discuss No-Fault Auto Insurance law

(KY3)
Published: Apr. 22, 2020 at 4:17 PM EDT
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Michigan's new no-fault auto insurance will be starting up July 1.

In 2019, Governor Gretchen Whitmer passed no-fault auto insurance legislation to bring down insurance rates for Michigan drivers.

The new law eliminates forcing drivers to pay for unlimited medical coverage for car injuries.

Now, Michigan drivers will choose how much coverage they would like.

The new law will allow drivers to choose a new level of Personal Injury Protection (PIP) coverage.

There are six PIP medical coverage levels available.

The amount is the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.

The levels are :

Unlimited coverage

Up to $500,000 in coverage

Up to $250,000 in coverage

Up to $250,000 in coverage with PIP medical exclusion: Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.

Up to $50,000 in coverage: Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy or health insurance that will cover auto accident injuries.

PIP medical opt-out: Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.

If a PIP medical option is not chosen by the insured, the unlimited PIP medical option is selected by default.

Drivers' premiums will depend on what kind of coverage they will choose, but by law, auto insurance companies are required to reduce the average PIP medical premium for eight years. For years Michigan has had the highest car insurance rates in the country.

Michigan drivers will also have the choice to choose what level of Bodily Injury coverage they want. The coverage will pay up to the policy-holders coverage limits if they are found responsible for damages involving injury, death, or property damages.

DIFS has revamped its

to make it easier for Michigan drivers to navigate the new law.

The new law goes into effect on July 1.

Drivers are encouraged to contact their agent to find out what kind of coverage they need if they are unsure.

The next virtual town hall meeting is Friday, April 24 at 10 a.m.

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