October 1, 2020
What Does the Reformed 2019 No-Fault Law in Michigan Change for Detroit Drivers
Everyone in Michigan is currently talking about the high auto insurance rates. Michigan has one of the highest premium prices in the country. The no-fault system proposed quite a few changes in front of legislation. These premiums in the no-fault system may be actually at fault. When the legislature passed a new Michigan No-Fault law, also known as Senate Bill 1, there were fundamental changes to insurance law. The No-Fault auto insurance reform will provide substantial benefits and changes to receive lower premium rates. This reform will have a significant impact on those who have an auto policy. The No-Fault insurance is required by law in Michigan for every car owner. Everyone must buy certain coverages in order to obtain a license plate. It is against the law to not have the specific required coverages and drive your car. A Michigan Car Accident lawyer at Elia & Ponto can help you understand these changes more clearly as well as help you with injuries you sustained from auto accidents in our state.
Vehicle owners in Michigan are most likely already aware of the No-Fault car insurance. This law entails that people only have limited options to pursue a claim. If you are injured in a car accident, you will need to turn to your own car insurance in order to get compensated. In a no-fault system, your personal injury protection pays for medical treatment and other losses. The system was originally created to cover the outrageous costs for people injured in an automobile accident.
How To Get Unlimited PIP From Someone Else’s Auto Policy
Personal Injury Protection may cover more than just the policyholder. The PIP benefits are available for more than just the driver. If you did not own an auto policy and were not a resident relative of an individual with an auto policy, and you were injured in an accident, you may be eligible for a PIP from other people’s policies. If you are not eligible for the claim, the Michigan Assigned Claims Plan could compensate you for the accident. The PIP covers you and your resident relatives but will no longer cover others. Michigan has made it more susceptible to sue others for medical bills. There are more lawsuits currently than before the reform existed.
Changes to the No-Fault Law:
Savings for Michigan drivers- The residents of Michigan have struggled with the high costs of auto insurance for decades. The new Michigan No-Fault law promised to lower the cost by at least 45% if they opt out of the PIP medical benefits. Although, all of these savings are only a small portion of your insurance bill. The PIP portion is approximately 35% to 44% of the total bill. For most people who struggle to pay this large bill, it may not make a significant difference.
Savings for insurance companies- The Michigan No-Fault law gives insurers the opportunity to avoid reducing their premium rates. In order for this to happen, insurers have to exemplify to the Insurance Commissioner proof that the mandatory rate reductions violate their rights. A violation of constitutional rights or giving the insurance company not enough capital will immediately opt them out of reducing their rates.
Higher liability- The Michigan auto insurance allows you to protect yourself legally if you are at fault in an accident. The liability limits have recently changed with the new No-Fault law. In the past, drivers used to be required to carry liability bodily injury insurance. The new law has increased the minimum liability to $50,000 to $100,000. Drivers are now able to choose how much coverage they need, as long as it meets the mandatory minimum.
No-Fault PIP choice- Drivers now have the option of following the No-Fault medical coverage levels. People are no longer required by law to purchase the PIP benefits.
No-Fault PIP benefits- Drivers are able to select to not maintain coverage by the No-Fault PIP benefits if they are covered by Medicare.
Michigan Catastrophic Claims Association- The MCCA is allowed to be liable for catastrophic injury benefits under the Michigan No-Fault Law. The drivers must have opted to maintain unlimited PIP medical benefits.
It used to be a more simple process to obtain compensation for unlimited medical bills from an accident. The system used to help those who had an outrageous bill from a catastrophic accident. People who did not have auto insurance were still eligible to gain medical coverage through other PIP. It is extremely important to make sure you have an exceeding amount of coverage. More drivers are getting sued and the MACP will not cover all of you costs. The unlimited PIP will no longer be there for you, get a personal health plan the cover your accident today!