This is How Michigan Auto Insurance Reform Affects Motorists

If you are a motorist in Michigan or any other state, you need to stay in touch with the state requirements to ensure you don’t fall on the wrong side of the law. In Michigan, for instance, there was an update of car insurance laws in 2020 that you need to know about. At Guy Hurley McNeil in Rochester Hills, MI, we take a deep dive to help you understand how the reforms affect you.

Michigan auto insurance reform

Until 2020, the Michigan law required motorists to purchase unlimited Personal Injury Protection (PIP) insurance. This coverage gave the injured optimal protection by covering medical expenses, partial wages lost, and final costs.

While this coverage favored the victims, it had its downside. The insurance companies faced expensive claims, fraud, and legal suits from medical providers. Insurance companies raised car insurance rates to ensure that their costs were covered, making Michigan one of the most expensive states to insure vehicles.

After long debates between drivers and lawmakers on reducing car insurance rates, change finally came on July 2, 2020. Here are some of the reforms introduced:

  • There were new PIP insurance coverage options — motorists could either keep the unlimited PIP coverages or opt for lower coverages with greater discounts.
  • Increased liability coverage — previously, drivers needed to maintain a minimum of $20,000 for one person killed and twice the amount for multiple persons killed in a road accident. Today, motorists must carry $250,000 for one person killed and twice the amount for multiple persons. However, drivers can apply to reduce the amounts to $50,000 and $100,000, respectively.

If you need to learn more about Michigan car insurance in Rochester Hills, MI, don’t hesitate to contact Guy Hurley McNeil for more information. Our work is not to sell you coverages only. We educate you about the policy you are interested in so that you can have sufficient information to make an informed decision.