In an effort to lower some of the highest insurance rates in the country, Michigan car insurance changes were announced in May 2019 and recently implemented on July 1, 2020. From lower annual premiums to more medical coverage options, Michigan car insurance changes may affect your family’s insurance policies in different ways.

Changes in the Michigan Car Insurance Reform

In Michigan, Personal Injury Protection (PIP) ensures that medical expenses associated with auto accidents are covered for life with unlimited coverage.

Michigan Car Insurance Changes

The new auto insurance law reform allows Michigan drivers the option to elect a different level of PIP medical coverage on their policies. In effect, insured drivers must indicate whether car or medical insurance provides primary coverage in the event of an auto accident. Once the primary coverage limit has been exhausted — which may cover expenses for medical care, recovery, rehabilitation or funerals — the secondary form of coverage will take over.

It’s important to note that many medical insurance policies — notably, policies secured through an employer — mandate that they cannot be treated as a primary insurance provider. Furthermore, if an insured individual sustains injuries that causes a long-term disability or otherwise prevents them from working, the employer’s insurance policy may not cover the related medical bills after the employee is terminated. That’s why it’s essential to secure or maintain PIP coverage in order to ensure medical claims related to car accidents are covered.

What You Should Do

The amount of coverage you need is informed by a number of factors. But, for many families, higher coverage levels provide adequate insurance to cover future medical costs associated with auto accident injuries. However, it’s important to talk to a trusted auto insurance agent and your health insurance carrier to better understand the benefits and risks of the different coverage options given your family’s unique risk profile and lifestyle.

While these changes have caused confusion for many, our insurance affiliate, Doeren Mayhew Insurance Group, specializes in recommending the best coverage options that suit their clients’ unique coverage needs and can help you navigate the complexities of the new Michigan laws. To learn more about how your family’s insurance policy may be affected, read Doeren Mayhew Insurance Group’s latest article here.