Michigan’s mandatory no-fault automobile insurance system was replaced when the state implemented new regulations in July 2020. Under the new law, drivers now have a choice when selecting Personal Injury Protection (PIP) — or no-fault insurance.

Personal Injury Protection

Since Michigan’s no-fault car insurance law changed, commercial vehicle owners can opt into a different level of PIP coverage. PIP covers medical costs associated with auto accidents, as well as additional expenses that may include lost income, child care expenses and household services.

Bodily Injury Liability

Additionally, business owners will also have to select a new Bodily Injury Liability Limit for their commercial auto policies. According to the new law, coverage defaults to $250,000/person and $500,000/accident — if your existing limit is lower. However, most commercial automobile insurance policies typically carry a minimum of $1,000,000 in bodily injury liability and/or umbrella insurance policies.

Mini Torts

The mini tort, or limited property damage, limit also changed from $1,000 to $3,000, which enables an insured entity to collect money for uncovered physical vehicle damage from the driver that caused the damage.

What You Should Do

As a commercial vehicle owner, it’s important to talk to a trusted auto insurance agent to review your business insurance policy in the context of the new law. Doeren Mayhew Insurance Group provides the guidance you need, whether you have cars, taxis, trucks or an entire vehicle fleet. Read their latest article to learn more about how the new Michigan car insurance law affects your commercial vehicles.