Navigating Auto Insurance Reform Part 7: What You Need to Know Now
saginaw bay underwriters AUTO INSURANCE
Navigating Auto Insurance Reform Part 6: Motorcycles, MCCA Fees & More
August 18, 2020

Navigating Auto Insurance Reform Part 7: What You Need to Know Now

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saginaw bay underwriters AUTO INSURANCE

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.

See “Navigating Auto Insurance Reform Part 1”

See “Navigating Auto Insurance Reform Part 2: Understanding Personal Injury Protection (PIP)”

See “Navigating Auto Insurance Reform Part 3: Understanding Bodily Injury (BI) Liability”

See “Navigating Auto Insurance Reform Part 4: Personal Injury Protection (PIP) Claim Example”

See “Navigating Auto Insurance Reform Part 5: Bodily Injury (BI) Liability Claim Example”

See “Navigating Auto Insurance Reform Part 6: Motorcycles, MCCA Fees & More”

In Part 7, we’ll conclude the series with some key takeaways.

Personal Injury Protection (PIP)

In Parts 2 and 4 of our series, we looked closely at PIP, the new limit options, changes to the PIP Order of Priority and a claim example. Here are the key takeaways:

  • You may want to consider maintaining unlimited PIP coverage. If you are injured in an auto accident, lower limits may not provide enough coverage. PIP also provides broader benefits than other types of health insurance.
  • You may want to consider reviewing who is and who is not covered by your policy. Adjustments may need to be made to ensure coverage for everyone in your family. If you think any of these situations or another unique situation might apply to you, please have a conversation with a Risk Advisor at SBU.

Bodily Injury (BI) Liability

In Parts 3 and 5 of our series, we looked closely at BI, the updated liability limit requirements and a claim example. Here are the key takeaways:

  • You may want to consider maintaining higher liability limits and uninsured/underinsured motorist limits. If you or someone covered by your insurance is at fault in an accident, there is now a much greater risk of being sued for significant damages, particularly if the injured person chose a lower Personal Injury Protection (PIP) limit.
  • You may want to consider a personal umbrella policy. An umbrella policy provides additional coverage beyond your auto liability limits.

Other Impacts of the Reform

In Part 6 of our series, we looked at how the reform has affected other aspects of Michigan auto insurance. Here are the key takeaways:

  • Motorcyclists now face more risk, since not all vehicle owners will have unlimited PIP coverage in Michigan. Maintaining unlimited PIP benefits on their personal auto policy is still something for motorcyclists to consider.
  • Michigan Catastrophic Claims Association (MCCA) fees are now dependent on the PIP limit you select.
  • Because there is no medical fee schedule in place between July 2020 and July 2021, you may want to consider maintaining unlimited PIP coverage and higher BI liability limits.
  • The maximum mini-tort (physical damage) amount a not-at-fault party can claim increased from $1,000 to $3,000.

Making the Complex Simple

Michigan auto insurance reform is a very important topic, but it can also be confusing.

We hope our “Navigating Auto Insurance Reform” series has helped make what you need to know clear, so you can make informed insurance decisions for you and your family.

For more information, see “Michigan Auto Insurance Reform FAQ.”

Please subscribe to our blog to be notified of future posts. Call Saginaw Bay Underwriters at (989) 752-8600 if you’d like to speak with an advisor about your auto insurance.

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: August 2020.

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