Starting July 1, 2020, Michigan motorists will enjoy a significant cost savings when it comes to auto insurance, especially motorists who choose to stop buying the lifetime, no-fault medical benefits that are presently mandatory. Nevertheless, every driver must be prepared to make critical decisions regarding medical coverage to adequately protect themselves and their families on the roads in case of an auto accident.
Less Insurance, More Problems
Under the current law, Michigan drivers automatically receive unlimited medical coverage for injuries sustained in an auto accident. Now, thanks to the new laws, you can choose less than unlimited coverage. This shift might be great for the wallet, but it’s incredibly dangerous if you are seriously hurt in a car crash.
The no-fault benefits – also known as personal injury protection (PIP) – that people may choose to abandon often cover things that private health insurance or Medicare doesn’t cover in case of an auto accident, like lost wages, long-term care, in-home attendants, rehab, and modifications to home or vehicle. Trying to afford any of these factors without insurance after a major car crash could mean financial ruin for an already devastated family.
An even bigger problem: If you are the person who causes the crash, you can now be sued for the other injured driver’s medical bills.
Should You Change Your Michigan Auto Insurance?
This new system is the first opportunity Michigan motorists have had to buy a reduced amount of no-fault medical coverage. There are also price controls for medical treatment. Insurance companies have some rules too – they are forbidden to use non-driving factors (like employment or education) when setting rates. A motorist’s zip code, type of vehicle, and claims history, however, will all factor into how an insurance company determines a person’s insurance rate premiums.
In short, the changes to Michigan’s no-fault car insurance can feel convoluted, just like any other insurance matter. Does this new system benefit auto insurance companies too much? Are they pocketing savings without really lowering premiums? These auto insurance changes are complicated.
Remember, insurance companies look out for themselves. You’re their customer and they rely on you, but while your livelihood and health and well-being are essentially in their hands if you’re involved in a car crash, they will always put themselves first. Don’t get caught without the benefits you need should you be involved in a car crash.
Discussing your benefits with an auto insurance rep isn’t always in your best interest. We would be happy to help you navigate these choices and make the best decisions for your family. Contact personal injury lawyer David C. Femminineo at Femminineo Attorneys in Macomb County. We are open for calls 7 days a week, from 7 a.m. to 7 p.m.