Michigan Auto Insurance Reform 2020
On July 2, 2020, a new law let Michigan drivers choose the Personal Injury Protection (PIP) option that best met their unique needs and budget. If you took advantage of this option, you’ll need to take additional action to renew it.
Ask a State Farm agent, Michigan!
00:01 Ask a State Farm® agent, Michigan!
00:04 July 2nd 2020. Why should this date matter to you?
00:08 Because significant changes happened in Michigan with the no-fault auto reform law which went into effect on July 2nd, 2020.
00:16 How does this change affect you as a Michigan driver?
00:20 One word: choices. If you are already insured with the number one auto insurer in the nation, State Farm, we say thank you. If you're not with the nation's number one carrier, you have a choice to join us either way.
00:35 You now have more choices that could lead to significant savings on your personal injury protection or PIP medical coverage premiums. The nearly 700 State Farm agents throughout Michigan are excited to not only go over existing policy holder coverages, but also to welcome aboard new customers.
00:53 We would love to welcome you to the neighborhood!
00:56 Since 1973, Michigan drivers were required to carry unlimited medical coverage on their personal automobile insurance policies.
01:04 This meant higher premiums and little choice.
01:08 Now you have the option of six different personal injury protection coverages.
01:13 Option one: unlimited coverage. This would be the same as your coverage limit prior to the no fault law change.
01:21 Option two: up to five hundred thousand dollars in coverage.
01:26 Option three: up to two hundred and fifty thousand dollars in coverage
01:30 Option four: up to two hundred fifty thousand dollars in coverage, with some or all persons excluded from PIP medical.
01:38 For instance, you may qualify for this option if you have qualified health insurance.
01:43 That means your health care policy does not exclude auto injuries and your deductible is not greater than six thousand dollars.
01:50 Option five: you can choose fifty thousand dollars in coverage if you're enrolled in medicaid and meet other eligibility criteria, and
01:59 Option six: PIP medical opt out.
02:02 You can choose to have no PIP medical if you have medicare parts A and B and again if you meet other eligibility criteria.
02:10 Remember, if you do not choose a different PIP medical option, your coverage will default to the unlimited coverage option.
02:28 All of these changes are why it's so important to call or see a State Farm agent and make the choice that's best for you now. The sooner the better. Don't wait until the last minute.
02:40 A State Farm agent can help you decide which option may best suit your needs.
02:44 It costs nothing to speak to an agent.
02:46 There's no obligation if you do, and there could be significant savings to be had.
02:52 And here's the deal: While some other insurers raised their rates in Michigan, State Farm filed to reduce both home and auto rates in 2020.
03:00 There's never been a better time to talk to a local State Farm agent, so don't go it alone, Michigan. When you want the real deal, like a good neighbor State Farm is there.
Act now to keep or change your current PIP policy selections
To retain your current PIP selection for the upcoming renewal, you must:
- Contact your agent
- Discuss your coverage options and make selections
- Complete the PIP form
- Provide document(s) for Qualified Health Care (QHC), Medicare, or Medicaid
If your PIP form and documentation is not received prior to your upcoming renewal, your policy will be renewed with Unlimited PIP as required by Michigan law. This will increase your premium if you previously chose less than Unlimited PIP. You’ll be sent a new declarations page reflecting this change.
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Michigan Personal Injury Protection coverage options
The only coverage previously available in Michigan was Unlimited PIP. That expanded in July 2020. Check out the PIP medical coverage options and talk to your State Farm agent to help you figure out which works best for you:
- Option 1: Unlimited coverage (this would be the same as you have today)
- Option 2: Up to $500,000 in coverage
- Option 3: Up to $250,000 in coverage
- Option 4: Up to $250,000 in coverage with some or all persons excluded from PIP medical. For instance, you may qualify for this option if you have qualified health insurance. That means your health care policy does not exclude auto injuries and your deductible is not greater than $6,000.
- Option 5: You can choose $50,000 in coverage if you’re enrolled in Medicaid and meet other eligibility criteria.
- Option 6: PIP Medical Opt-Out. You can choose to have no PIP medical if you have Medicare Parts A & B and again if you meet other eligibility criteria.
State minimums will also increase for the following coverages:
- Bodily injury
- Uninsured motorist
- Underinsured motorist
These changes will affect pricing. So, review these options with your local agent to get a better understanding of how they might impact your coverage and budget.
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Questions and anwers
Personal injury protection coverage can help with your medical expenses from an accident, no matter who is at fault.
The reform mandates lower PIP premiums. So, even if you maintain a high level of PIP coverage, you'll likely see some savings over time.
If you're a lifelong Michigan resident, the new reform presents you with a decision you've never had to make before. Talk it over with your State Farm agent to get a better understanding of the options available to you.
The goal is to choose the level of coverage needed to protect you and your loved ones. Your State Farm agent is there to help answer your questions, but at the end of the day the choice of coverage is up to you.
The reform took effect July 2, 2020. If you have any questions about the reform or other insurance matters, please contact your local State Farm agent.
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