What do I need to know about Michigan’s new auto insurance?

What is the new Michigan auto reform?

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.

Is Michigan a no fault state 2021?

(CBS DETROIT)- In May of 2019 Governor Whitmer signed into legislation a No-Fault auto insurance reform in an effort to address high premiums, and to lower costs for Michigan Drivers. That new policy goes into effect this week.

What auto coverage should I have in Michigan?

The minimum required coverage limits effective July 1 are: $50,000 per person who is injured or killed in an accident. $100,000 for each accident for all people injured or killed. $10,000 for damage your vehicle does to property in another state.

What information do I need to insure a new car?

For each car you want to insure, know:

  1. Make, model and year.
  2. Vehicle Identification Number (VIN)
  3. Safety features, such as passive restraint systems or anti-lock brakes.
  4. Anti-theft devices, such as GPS trackers.
  5. Roughly how many miles it will be driven annually.
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Is Michigan getting rid of no-fault insurance?

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. Under the new plan, drivers will be able to choose from up to six options for Personal Injury Protection coverage.

Did car insurance go down in Michigan?

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.

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.

Does my insurance go up if someone hits me?

According to data from the Consumer Federation of America reported by the auto insurance website The Zebra, the average rate increase for drivers in no-fault crashes is 10 percent. If you have a history of claims, your insurer may raise your rate for another claim even if you did not cause the accident.

What is the minimum PIP coverage in Michigan?

The PIP options for those on Medicare or those with health insurance that covers auto accidents: $0 PIP for those with Medicare Part A and Part B. $0 PIP for those with “qualified” health insurance coverage, which means it covers auto accidents and has a deductible no higher than $6,000.

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Can someone drive my car if they are not on my insurance?

If a friend or a family member has an accident and isn’t insured, then you will have to use your insurance. Unless you have expressly denied that driver permission to use your vehicle.

Do I need unlimited PIP in Michigan?

Under the new law, no one has to purchase unlimited PIP medical on their auto policy, though Michigan remains the only state where that is still an option. People who buy lower PIP medical coverage levels or who opt out entirely would rely on their health insurance coverage to pay for any auto accident injuries.

How much bodily injury liability do I need in Michigan?

Michigan auto insurance policies are required to provide bodily injury liability insurance coverage of not less than $250,000 per person and up to $500,000 per accident (“$250,000/$500,000”) for these claims unless you select higher or lower limits depending on the amount of protection you need.