Every state has different laws pertaining to auto insurance, which types of coverage drivers must carry, and how to handle the question of fault in an accident. Michigan is one of the many states that follows a no-fault law when it comes to auto insurance. Instead of filing a claim against an at-fault driver for injuries and damages sustained in an accident, drivers must use their auto insurance policies to cover any resulting costs.
As of July 2020, the rules for no-fault insurance law in Michigan will change. The change revolves around Personal Injury Protection (PIP) coverage, or auto insurance coverage that pertains to bodily injuries sustained by drivers and passengers in an accident.
How Is Bodily Injury Coverage Changing?
Currently, Michigan drivers must have no-fault auto insurance that provides up to $20,000 in coverage for each person injured or killed in an accident, up to $40,000 in coverage for a single accident that results in multiple injuries or fatalities, and up to $10,000 in property damage coverage for accidents that occur out of state. The new law increases the minimum PIP coverage amounts and adds a rule:
- As of July, Michigan drivers must carry auto insurance that provides up to $50,000 for a person injured or killed in an accident.
- The new rule also requires carrying up to $100,000 in PIP coverage for a single accident resulting in multiple injuries or fatalities.
- Valid Michigan no-fault auto insurance policies will also apply coverage to injured drivers and passengers to any accident that occurs in the United States or Canada.
- Michigan drivers may also elect to purchase additional PIP coverage of $250,000 and $500,000 accident coverage, or $500,000 PIP coverage and $1,000,000 accident coverage, if desired.
These changes aim to reduce the average cost of auto insurance in Michigan. Still, some drivers may see their coverage costs increase or may choose to enhance their existing coverage limits, which will, in turn, result in higher premiums.
The new law also allows Michigan drivers to choose to keep unlimited coverage or opt out entirely of bodily injury protection if they have medical insurance that offers complete coverage for auto-related injuries. Ultimately, it is very difficult for Michigan drivers to predict how their auto insurance costs will change under this new rule until they make their coverage selections in July.
Find Legal Representation When You Need It
The no-fault auto insurance system in Michigan exists to increase the chances of car accident victims securing compensation that a tort liability system might otherwise deny. These new changes can be confusing, and in some cases, an injured driver may still need to seek legal remedies following a car accident in Michigan.
The car accident attorneys at Gallon, Takacs & Boissoneault offer legal counsel to clients in Ohio, and Michigan, and our team understands how the new changes to Michigan’s no-fault insurance rule could potentially complicate an accident claim.
Contact us today if you believe you need legal representation following a car accident in Michigan, and we will let you know how our team can help.