Why Do I Keep Getting PIP Forms From My Auto Insurance Carrier Each Year?
Gone are the days when drivers in Michigan were required to purchase unlimited personal injury protection (PIP) coverage for their auto insurance. As of 2020, you have many other coverage levels to choose from, and select drivers can even opt out of PIP coverage altogether. This means you can choose the coverage that best suits your budget and other needs.
However, the law requires insurance companies to provide PIP forms to policyholders 90 days prior to each renewal explaining the benefits and risks of different coverage selections. This is why you receive PIP forms from your insurance carrier regularly.
The wisest move is to discuss your auto insurance options and selections with an experienced insurance professional. At Hartman Insurance, we understand the complicated ins and outs of Michigan auto insurance laws and requirements, and we can help you choose the right coverage to protect yourself, but also to fit into your budget.
Auto Insurance Options in Michigan
The current reformed auto insurance laws in Michigan brought many changes for drivers seeking insurance coverage. First, you can choose your level of PIP coverage, which is no-fault insurance that helps cover your medical costs and lost income up to your policy limits. Your PIP options include:
- Stay with the previously required unlimited coverage
- $500,000 limit
- $250,000 limit
- $50,000 limit (for drivers who demonstrate Medicaid coverage)
- Opting out of PIP completely (for drivers who demonstrate coverage from Medicare Parts A & B or with Qualified Health Coverage prior to age 65)
Most people will still need some type of PIP coverage. This is why insurers must provide PIP forms to their policyholders. We can help you select the right coverage level for you and your situation.
The law also requires you to purchase bodily injury coverage, which provides benefits to others who suffer injuries when you are at fault for a crash. The minimum coverage for bodily injuries is $50,000 per person injured and $100,000 per accident. The default limit for Bodily Injury Liability is $250,000 per person and $500,000 per accident. If you want a limit lower than that, you will be required to sign a form prior to each renewal as well.
If you want additional protection for your vehicle in the event of an accident, you have the option to purchase collision coverage and/or comprehensive coverage. Collision insurance covers damage to your vehicle you if you hit another car or object. Comprehensive insurance covers damage from other circumstances, including:
- Theft
- Vandalism
- Fire, hail, and weather
- Animal collisions
While not necessary, many people benefit from collision and comprehensive coverage.
Another aspect of auto insurance that is wise but not mandatory in Michigan is uninsured/underinsured motorist coverage (UM/UIM). This coverage kicks in if:
- Another driver hits you without any liability insurance coverage
- Another driver hits you without adequate liability coverage to cover your losses
- Another driver hits you, flees the scene of the accident, and are not found
Consult with Michigan Our Auto Insurance Professionals Today
There are now more options than ever when it comes to purchasing car insurance in Michigan. You might receive forms from your insurance provider, but it is always best to discuss all your coverage options with our team at Hartman Insurance. Contact us today to learn more about how we can help with your insurance needs.