November 18th, 2019
Contributor: Benjamin M. Muth
Beginning in July of 2020, Michigan's "No-Fault" Auto Insurance law will go through serious modifications. Prior to the changes that take effect in 2020, only one policy of insurance was available to buyers: "unlimited PIP." What unlimited PIP meant is that your auto insurance company paid for your medical bills, no matter the cost, for the rest of your life for injuries you suffered in a motor vehicle crash.
That coverage has one major benefit: there's no limit to the amount of medical bills your auto insurance covered. (up to $500,000, when the Michigan Catastrophic Claims fund kicks in)
That coverage has one drawback: it's expensive.
Beginning in 2020, you now have the option of choosing four "levels" of PIP (medical) insurance: $50,000 limit, $250,000 limit, $500,000 limit, and "unlimited."
The lower coverage amounts will be cheaper, but with all insurance, you get what you pay for.
Muth Law, PC's strong recommendation is that all drivers continue to pay for "unlimited PIP." Yes, it's expensive. Yes, most people have health insurance that may help out. But consider for a moment that one night in a hospital costs between $35-$50,000. One week in the hospital, and your cheap auto insurance will be exhausted. And if you don't have medical insurance to help out, you will be stuck with the astronomical bills for a car crash that was not your fault. This leads to bankruptcy for victims of auto negligence, or application for social assistance like Medicare and/or Medicaid.
In Muth Law, PC's opinion, the new No-Fault law will push victims into bankruptcy and social assistance for bills that auto insurance companies have historically paid. The only way to guarantee you don't fall into that trap is to continue purchasing "unlimited PIP."
Some insurance carriers will tell you they don't offer it anymore. Some insurance carriers will attempt to coerce you into buying a cheaper level of PIP. Avoid this, and if you can, always purchase "unlimited PIP."
If you have been injured in a motor vehicle crash, or have questions about your new coverage, contact an experienced Michigan car accident attorney. Muth Law, PC helps clients navigate the complex world of No-Fault every day. For a Free Consultation Call Muth Law, PC today at 734-481-8800