Michigan Auto Insurance Reform Will Go Into Effect on July 1, 2020

On July 1, 2020, the law governing auto insurance in Michigan will change. Motorists will face several new choices. For example, car accident victims will no longer be guaranteed lifetime coverage. Now, they must purchase lifetime coverage. In addition, all drivers will be held liable for medical expenses caused by an accident. auto insurance quotes georgia

In addition to the new law, the changes in the Michigan auto insurance system will increase competition. This competition will drive down rates for drivers and businesses. More auto insurance companies are indicating that they’ll offer coverage to Michigan drivers once the new law goes into effect. Competition will drive down premiums even further. However, it is also important to note that the technical fixes to the bills will make auto no-fault reforms in Michigan undone. In the long run, premiums will rise for drivers and businesses.

The Michigan Department of Insurance and Financial Services is expected to approve the change. If the insurance company’s appeal succeeds, they can change their rates. They’re likely to accept a mid-range rate that reflects a more competitive market. Additionally, they’ll continue to pay a $43 fee to the Michigan Catastrophic Claims Association for coverage of catastrophic injuries.

The new auto insurance law in Michigan poses significant challenges for drivers. The no-fault system forces Michigan residents to pay among the highest auto insurance rates in the country. However, the new law will allow drivers to select personal injury protection (PIP) coverage. However, some critics say that the new law will result in dramatically lower medical benefits for motorists in Michigan.

The auto insurance reform law is meant to reduce state auto insurance premiums, but it has turned out to be a disaster for drivers who need to seek medical attention following a car crash. In addition to the financial costs for the victims of catastrophic crashes, this law has resulted in the loss of 4,000 jobs in the health care sector.

In the past, Michigan drivers were required to pay PIP, or personal injury protection, if they were involved in an accident. This insurance coverage paid for medical bills until the victim was no longer recuperating or reached the limit of the policy. In addition, the insurance policy allowed those who were not fully recovered to sue the other driver. However, to qualify for PIP coverage, the driver must pay a deductible. This is typically around $300 or $500 per accident. However, the deductible amount varies from insurer to insurer.

Another reform in Michigan’s auto insurance law eliminated the mandate for unlimited PIP coverage in auto insurance policies. In some cases, this change resulted in lower premiums for drivers with lower PIP coverage. As a result, many drivers in Michigan now pay lower premiums than elsewhere. However, Michigan drivers still face some of the highest auto insurance costs nationwide.