Big changes
are coming for you and all other
Michigan
Drivers July 1
That's when Michigan's new auto insurance law takes effect. The two biggest changes? Premiums and protection. Now is the time to learn more so that as of July 1, you can drive protected.
After July 1, the new law requires you to choose the level of medical and rehabilitation coverage that comes with your auto insurance policy. Lifetime PIP will only be available to those who choose it.
Find out how Michigan’s new auto insurance law affects you and how to drive protected in Michigan after July 1, 2020.
Planning to Purchase Protection
After July 1, many Michigan motorists could pay less for their auto insurance policies. If and how much you might save depends on several factors.
Also, after July 1, auto insurance policies in Michigan will no longer automatically come with lifetime medical and rehabilitation coverage — called Personal Injury Protection (PIP) — for people injured in car crashes. Instead, Michigan motorists for the first time will decide how much PIP to buy with their auto insurance policies. Drivers can still buy unlimited PIP coverage if they choose.
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PIP protects motorists and their families from potentially large out-of-pocket costs. If you are injured in a car crash, PIP pays your immediate and long-term medical and rehabilitation expenses. People who are seriously injured in car crashes may require medical and rehabilitation care for years, decades and even for a lifetime, costing thousands to millions of dollars.
From a broken arm to a spinal cord injury, the costs of emergency room visits, surgeries, long-term physical therapy, home modifications, job training and long-term care can take a financial toll on you and your family. Your PIP coverage pays for many medical and rehabilitation services you might need and that other types of insurance may not cover. PIP coverage offers a level of medical and financial protection that may not be available to you any other way. It even provides wage loss protection, which no other medical coverage provides.
From the deer-filled woods of northern Michigan, to the bustling streets and highways of metro Detroit, PIP coverage helps you drive protected. Contact your auto insurance agent or company to find out about PIP coverage and how you can drive protected.
Still Deciding What to Do
Decisions. Decisions.
Making these decisions requires the right information. After July 1, when the state’s new auto insurance law takes effect, each Michigan motorist will decide how much auto no-fault medical and rehabilitation care – called Personal Injury Protection (PIP) — to buy with their policies. Under the new law, Michigan auto insurance policies will no longer automatically include lifetime PIP. Instead, you will only have lifetime medical care and protection if you decide to include it when you buy or renew your policy.
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The level of PIP coverage you decide to buy may have financial and medical consequences for you and your family.
PIP pays your immediate and long-term medical and rehabilitation expenses if you are injured in an auto accident, protecting motorists by covering costs that otherwise would have to be paid out of pocket or, in some cases, by other forms of insurance. For serious injuries, you may require medical and rehabilitation care for years, decades and even your lifetime, costing thousands to millions of dollars.
Under the new law, drivers will be able to purchase the following amounts of coverage:
• Opt-out ($0) – only available to drivers with Medicare
• $50,000 – available to those with Medicaid
• $250,000 – available to all drivers
• $500,000 – available to all drivers
• Unlimited – available to all drivers
Contact your auto insurance agent or company to learn how to drive protected under Michigan’s new auto insurance law.
Not Interested in Buying Protection
All Michigan motorists should understand the potential financial and medical risks to themselves and their families when buying lower levels of Personal Injury Protection (PIP) coverage, or none at all. It’s important to understand that people who are seriously injured in car crashes often require medical and rehabilitation care for years, decades and even lifetimes, costing thousands to millions of dollars.
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Some Michigan drivers may be able to opt out of purchasing PIP coverage under the new law. However, if you decide to skip PIP coverage, you may end up having to pay future medical and rehabilitation care costs out of your pocket. If you have other health insurance (through your employer for example), it may only cover some of the expenses and services. So, if you have other health insurance, before you decide to purchase a low level or no PIP at all, check to see what medical and rehabilitation care will or will not be covered if you are injured in a crash.
Bottom line: purchasing PIP insurance coverage when you buy or renew your auto insurance will ensure you drive protected and provides peace of mind of knowing your medical and rehabilitation care will be covered if you are seriously injured in a car crash. The changes on July 1 may have big impacts on your future health.
Need more information? Ask your auto insurance agent or company about how to drive protected under Michigan’s new auto insurance law.
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