Michigan auto insurance looks very different now than it did before July 2, 2020. Auto insurance reform or “no-fault reform” impacts every driver in the state, including you. However, the topic can also be very confusing.
Saginaw Bay Underwriters created this helpful series of posts entitled “Navigating Auto Insurance Reform” to make what you need to know clear, so you can make informed insurance decisions for you and your family.
In Part 3, we’ll explain how the reform impacts Bodily Injury (BI) liability and look at some things you may want to consider.
Understanding Bodily Injury (BI) Liability
If you or someone covered by your auto insurance injures someone else in an accident and is at fault, your own Bodily Injury (BI) liability provides coverage for damages you’re found to be responsible for.
New BI Limits
Auto reform increased the minimum BI limits that you must carry to $50,000 per individual / $100,000 per accident / $10,000 property damage, from the previous minimum limits of $20,000 per individual / $40,000 per accident / $10,000 property damage.
It also created new default liability limits of $250,000 per individual / $500,000 per accident / $10,000 property damage. You may choose to purchase even higher BI limits.
If you wish to select liability limits less than the new default limits, you’ll be required to sign a form acknowledging the risks.
Greater Risk of Being Sued
Before July 2, 2020, if you injured someone in an auto accident and were found to be at fault, you could only be sued for pain and suffering. Now you have a much greater risk, as injured parties can sue for these additional items:
Considerations Regarding BI
Making the Complex Simple
Michigan auto insurance reform is a very important topic, but it can also be confusing.
In Part 4, we’ll use a scenario to look more closely at Personal Injury Protection (PIP) and some things you may want to consider.
For more information now, see “Michigan Auto Insurance Reform FAQ.”
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Saginaw Bay Underwriters has made every attempt to ensure this information has been obtained from reliable sources. For specific language, please refer to your insurance policy, in addition to state statutes, laws and regulations. Current as of: July 2020.