This reform was enacted on July 1st, 2020. It has been a little over one year since. It was put in place due to the fact that although Michigan offered the highest auto insurance benefits, it also was the highest when it came to cost. Personal Injury Protection (PIP) used to be mandatory. This proved time and time again to be quite expensive for Michiganders. With the reform, premiums were expected to be lowered while still offering choices on PIP coverage.
Let’s go over the PIP coverage options offered under the reform provided by Michigan.gov:
- Unlimited coverage
- $500,000 per person per accident
- $250,000 per person per accident
- $250,000 per person per accident with exclusions
To select this option, one or both of the following must be met:- The named insured who is excluding PIP medical has qualified health coverage that is not Medicare; AND
- Any resident relative or spouse who is excluding PIP medical has qualified health coverage
- $50,000 per person per accident
To select this option, both of the following must be met:- The applicant or named insured is enrolled in Medicaid; AND
- Any spouse and all resident relatives have qualified health coverage, are enrolled in Medicaid, or are covered under another auto policy with PIP medical coverage.
- No PIP medical coverage
To select this option, both of the following must be met:- The applicant or named insured has coverage under both Medicare Parts A and B; AND
- Any spouse and all resident relatives have qualified health coverage or are covered under another auto policy with PIP medical coverage.
Our owner, Patrick Brennen, briefly talks about the expectations VS the reality with the reform:
Expectations vs. Reality with Michigan Auto Insurance Reform – St. Clair Shores. MI
Video Transcription
“Hey, it’s Pat Brennan with Entrust Insurance. Just wanted to go over some of the things that we’ve been observing and what we’re seeing now that we have a decent sample to see how the rates are helping or hurting people. First thing to go over is expectations versus reality. So the expectations when this was signed into law is that everybody was going to save money on their auto insurance. The reality of the situation that we’re finding out is it’s nearly impossible for everybody to save money and there’s a lot of factors that go into it. For the first part, rating factors have changed. The State of Michigan demanded that certain things be removed and certain things change. So where that’s helping some people, it’s actually hurting the costs of some other people.”
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