New auto insurance laws in Michigan have given Michigan drivers some tough choices to make when they get or renew their auto insurance. The new laws have been appreciated by drivers because they have allowed lower rates, but the new policies are a little more complicated.
The part of the policy that covers accident injuries is called personal injury protection, or PIP. With this part of the policy, it's necessary to check whether you have coordinated coverage. This is your own medical insurance. The law refers to your active health insurance policy as qualified medical coverage. If you have an active policy and it will cover injuries you get in an auto accident, you can actually opt out of having PIP coverage through your auto insurance policy. There is a maximum allowed deductible for health insurance that has to be in place. If you don't have coordinated coverage, you have to either choose to keep your policy at an unlimited amount of coverage or lower the coverage amount to have lower premiums. The amount of this that you choose will likely be based on your budget.
The second part is your liability coverage. There is a new mandatory minimum of liability protection, and there is a default amount if you don't make that choice. That means that you need coverage with the new amount of liability coverage to keep your policy legal. If you don't make a choice for the minimum or something above that amount, your policy will default to a much higher rate of coverage. To keep your premiums lower, it's important to make that choice.
If you need help with the new Michigan auto insurance laws, call us at the Rossell Agency for a consultation. We are ready to help you understand the new laws and get your policies legal.
When it comes to auto coverage more is better than less. We can help you get the following coverages: