NewsGetting Around Metro Detroit


A quick recap of what's changing under Michigan's new auto insurance rules

Posted at 4:40 PM, Jun 30, 2020
and last updated 2020-06-30 17:57:49-04

(WXYZ) — Michigan’s new auto insurance law goes into effect July 2. The law was passed to make insurance more affordable, but how much money can you expect to save? How soon can you start saving? And could lowering your cost increase your chances of being sued?

The new law has many nuances, but Kris Hall, vice president of Meadowbrook Insurance Agency, shares the main points you need to know.

A brief recap of what’s changing:

  • Personal Injury Protection – Driver’s will not be required to carry unlimited coverage. Driver’s now have the option to decrease coverage to $500,000, $250,000 or opt out altogether if you have qualifying heath insurance.
  • Bodily Injury Liability – Driver’s can now be held responsible for the medical bills of another driver
  • So what happens on July 2? Does my policy automatically change?
  • Policies are not changing until July 2nd or when the policy renews – whichever is later.
  • Insurance companies are sending “make your selection” paperwork about 45 days in advance of the renewal
  • If you fail to respond, your policy is automatically renewed at the State “default” levels of $250k liability, and ‘unlimited’ Personal Injury Protection.
  • Want to make changes earlier: Contact your insurance company or switch to another company mid-term.
  • Are there any implications for seniors on Medicare?
  • Seniors enrolled in Medicare parts A & B will have the option to reduce or opt out of Personal Injury Protection.
  • However, just like with “employer sponsored” health coverage, it could be subject to limitations such as:
  • Home and vehicle modifications, attendant care, or non-emergency medical transportation
  • Therefore, some clients are maintaining ‘unlimited’ coverage, or buying the maximum their budget allows.

Where can people find more information? Talk to your agent, or check out the series of web videos Kris Hall with Meadowbrook Insurance Agency created at