What is the new law in Michigan for car insurance?

After nearly 40 years of requiring drivers to have unlimited No-Fault medical coverage in case of an auto accident, Michigan drivers can now choose from 1 of 4 personal injury protection benefits, and for policies issued or renewed, drivers will have new coverage options to choose from.

What is Michigan’s new No-Fault law?

Michigan law requires you to have no-fault automobile insurance on your car. If you have an accident, this required insurance pays for injuries to people and for damages your car does to other people’s property and to properly parked cars. IT DOES NOT PAY FOR ANY OTHER DAMAGE TO CARS.

Is Michigan lowering car insurance?

The MCCA has already announced that as a direct result of the new law, it is lowering its per vehicle assessment starting July 2, 2020, which will save Michigan drivers at least $120 per car. Drivers choosing less than unlimited PIP medical will not pay any assessment to the MCCA.

When did Michigan become a No-Fault state?

Michigan is a No-Fault state for auto accidents. Before the Michigan No-Fault insurance law was passed by lawmakers in 1973, Michigan had been a tort liability state.

Is Michigan getting rid of no-fault insurance?

Today, Michigan drivers are required by law to have a no-fault automobile insurance policy that includes Personal Injury Protection (PIP) benefits. On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage.

Did car insurance go up in Michigan?

Since 2011, Michigan has experienced the second-highest auto insurance rate increases in the country. The state’s largest insurers have raised rates by an average of 47% — almost double the national average of 25% and only slightly less Georgia’s 54%.

Who pays for car damage in a no-fault state?

In most states, the driver who caused the accident will bear financial responsibility (usually through an insurance company) for injuries and other losses. But in a dozen or so states, the car insurance process starts (and often ends) with a no-fault car insurance claim made through your own coverage.

What is the minimum auto insurance coverage in Michigan?

The minimum amount of Michigan auto insurance coverage is $50,000/$100,000/$10,000. In the event of a covered accident, your limits for bodily injury are $50,000 per person, with a total maximum of $100,000 per incident. It also covers up to $10,000 for damage to another person’s property.

How much will Michigan car insurance go down?

Michigan’s auto insurance rates went down 18% in 2020 compared to what they were the previous year. That’s according to a national study from an online insurance comparison website, TheZebra.com. According to the study, Michigan’s rates went from an average of $3,106 in 2019 to an average of $2,535 in 2020.

Can you opt out of Pip in Michigan?

Michigan’s new auto insurance reform law went into effect on July 1, 2020. With the new law, you can opt out of buying personal injury protection (PIP) as part of your auto insurance—but only if your health insurance policy covers auto injuries and has a deductible of $6,000 or less.

Why did car insurance go up in Michigan?

Insurers generally raise rates when they see profits dwindling, which is usually attributed to heavy losses caused by frequent and severe claims. Not only are insurance losses in Michigan among the highest in the country, they primarily stem from no-fault/PIP claims.

Does my insurance go up if someone hits me?

When you are the at-fault driver in an accident, Car Insurance Comparison reports that you can expect about a 49 percent premium increase. In this situation, you may be able to save by shopping around for a policy with a different insurer. Most claims remain on your driving record for about three to five years.

What is the minimum coverage for auto insurance in Michigan?

Michigan car insurance laws mandate that drivers carry minimum liability coverage limits of 20/40/10 on their vehicle. Michigan laws also mandate that you have Property protection insurance (PPI). It is a mandatory coverage specific to Michigan.

What are the liability limits in Michigan?

Michigan law requires that you carry minimum liability limits of $20,000 per person and $40,000 per accident, as well as $10,000 in property damage coverage.

Is Pip required in Michigan?

Yes. Michigan PIP coverage is mandatory as to all private and commercial vehicles registered in Michigan. Even if a vehicle is registered in another state and doesn’t have PIP coverage there are circumstances where the law will grant you PIP benefits in the absence of specific policy language.

How does no fault insurance work in Michigan?

Under the Michigan no-fault system, your insurance company pays you for the damage to your car from an accident, regardless of who is at fault. The other driver will get the damages to repair their vehicle from their insurance company. Under the Michigan no-fault system, you do not have to decide who is at fault to receive payment for your damages.