The Michigan no-fault auto insurance reform can feel overwhelming. It’s hard to know what coverage you need or how much it will cost. This guide explains why we recommend higher limits and an umbrella policy to protect your family and assets.
Quick Overview of Michigan No-Fault Auto Insurance Reform
The reform aims to make auto insurance more affordable for Michigan drivers. It allows you to choose your level of medical coverage for catastrophic claims. Key changes include:
- Reduced PIP (personal injury protection) rates
- Increased state minimum bodily injury limits
- Prohibited rating based on gender, marital status, education, occupation, credit score, or zip code
These changes apply at your renewal after July 2, 2020.
Our Coverage Recommendations
Kapnick Insurance Group advises selecting the broadest options for maximum protection. We recommend:
- Unlimited PIP Coverage
- Bodily Injury Limits: $500,000 per accident/$500,000 per occurrence
- Uninsured Motorists Limits: $500,000 per accident/$500,000 per occurrence
- Underinsured Motorists Limits: $500,000 per accident/$500,000 per occurrence
- Property Damage Coverage: $500,000
- Personal Umbrella Policy: Minimum limit of $1,000,000
Why Choose Higher Limits and an Umbrella Policy?
Medical Bills Add Up
Even $100,000 in coverage can disappear quickly after an accident. Ambulance rides, hospital stays, and recovery costs add up fast.
Protect Your Future
If your limits run out, you’re still responsible for the remaining costs. This could impact your current and future income.
Cover the Gap
Uninsured or underinsured drivers can leave you paying out of pocket. Higher limits protect you and your family from these gaps.
Minimal Price Difference
Increasing your limits doesn’t mean tripling your rate. Often, it’s just a small annual increase for much better protection.
Broader Coverage with an Umbrella Policy
An umbrella policy extends your liability coverage across auto, home, and boat policies. It provides $1 million to $20 million in additional protection for you and your family.
Real-Life Claim Example
A driver was run off the road by a texting teen. The accident caused severe injuries, emergency surgery, and long-term care needs. Total claim expenses exceeded $850,000, with $350,000 not covered by health insurance. Without higher limits, the driver would have faced significant out-of-pocket costs.
Understanding Michigan no-fault auto insurance reform and choosing the right coverage can save you from financial hardship. Protect your family, assets, and future with higher limits and an umbrella policy.
Read more to understand how an auto policy would pay according to the various PIP options.
Looking to Learn More?
Visit our Michigan No-Fault Auto Insurance Reform page for more in-depth coverage, information, and resources.
