No-Fault Reform and PIP Medical Options

In 2019, Michigan’s governor signed a new law that reformed the state’s no-fault auto insurance system, making significant changes to personal injury protection (PIP) medical coverage options for drivers. These changes took effect on July 1, 2020, and have since impacted how Michigan drivers can purchase and use PIP medical coverage.

If your auto insurance is expiring, you might get better coverage for less money if you take the time to explore all of your options. Sorting through all the available coverages and determining what best suits your needs can be challenging and time-consuming.

If you are in the Saline area, allow the dedicated insurance professionals at Hartman Insurance to handle this process for you. We will review your circumstances and advise on the most comprehensive coverage for the most value. Contact us today to learn more!

Overview of the Reformed Insurance Options

Under the new law, Michigan drivers have the option to select their PIP medical coverage limit, which is the maximum amount that will be paid for medical expenses in the event of an accident. Previously, Michigan drivers were required to have unlimited PIP medical coverage, which was one of the factors that made Michigan’s auto insurance rates among the highest in the nation.

Drivers now have several options for PIP medical coverage limits, including:

• Unlimited coverage
• $500,000 coverage limit
• $250,000 coverage limit,
• $50,000 if the driver is enrolled in Medicaid
• Opting out of PIP medical coverage altogether, if the driver has qualifying health insurance coverage or is on Medicare

Drivers who opt for a lower PIP medical coverage limit may be able to save money on their auto insurance premiums. However, it is important to note that selecting a lower limit will also result in less coverage for medical expenses in the event of an accident.

Additionally, the new law also allows drivers to coordinate their PIP medical coverage with other health insurance coverage, which can help reduce duplication of benefits and potentially lower overall medical costs. This means that if a driver has qualifying health insurance coverage, their PIP medical coverage will coordinate benefits and pay for medical expenses that exceed the limits of their health insurance coverage.

Another significant change under the new law is the establishment of a fee schedule for medical providers who treat injured drivers. This fee schedule sets maximum allowable charges for certain medical procedures and treatments, which can help reduce the overall cost of medical care for auto accident injuries.

A Saline Auto Insurance Professional Can Help

Overall, the Michigan no-fault reform and PIP medical options provide drivers with more control over their auto insurance coverage and offer potential cost savings. However, it is important for drivers to carefully consider their PIP medical coverage options and the potential impact on their medical expenses in the event of an accident.

At Hartman Insurance, we stay informed about any future changes or updates to Michigan’s auto insurance laws and regulations. We can explore the auto insurance and PIP options that make the most sense for you, your family, and your wallet.

Contact our team today for more information about our services. We have been assisting the Saline area with their insurance needs for over 75 years.