Michigan no-fault insurance is something required by law in Michigan.
Moreover, you cannot get your license plates without it.
Therefore, we will provide you with all the information you need to know about this kind of insurance.
What is Michigan’s no-fault insurance?
This no-fault insurance is necessary before proceeding to have your license plates and drive your car.
Moreover, it will be against the law if you started driving without it.
Furthermore, no-fault insurance covers all your medical expenses, wage loss benefits if you had an auto accident.
In addition, it also covers replacement services, and the damage caused to other people’s properties.
However, it does not charge for your car repairs.
Apart from this, on May 25, 2019, they implemented new no-fault law passes.
Moreover, these significant changes will affect every driver in Michigan.
What is new?
The new no-fault law passes has been the concern of lots of drivers in Michigan; therefore, here are the new changes.
1) No-fault PIP choice
Drivers now will not be required by law to have unlimited no-fault PIP benefits.
Moreover, there will be options to choose from such as $50,000 coverage level, $250,000, $500,000 or no limit.
However, the $50,000 coverage level will be applicable, if the driver is enrolled in Medicaid.
2) Savings for drivers
Thanks to the public for having these new laws as they over complained about the high costs of auto insurance.
Moreover, Michigan promised 45% savings for drivers who opt for the $50,000 cap on no-fault PIP medical benefits.
Additionally, they also promised 35% savings for those who opt for the $250,000 cap.
Furthermore, they promised 20% for the $500,000 cap, and 10% for the no-limit option.
Moreover, this no-limit option is for those who wish to maintain their unlimited no-fault medical benefits.
However, these new passes are for effective policies after July 2020 and before July 2028.
3) Savings for car insurance companies
The new Michigan no-fault law allows car insurance companies to avoid reducing their premiums under one condition.
Moreover, this condition is if they illustrated that, the new law will violate their constitutional rights.
Furthermore, leaving their company at risk of having too little capital.
4) Mini Tort
This new Michigan law will increase the recovery limit from $1,000 to $3,000.
However, this will take effect on accidents occurring after July 2020.
Michigan new law effectiveness
These new laws will undoubtedly help both drivers and insurers have many benefits.
However, many people complained about some of these laws as they think they only effective for companies.
Moreover, they think it is all like discounts on the premium rates and not really addressing the real issue.
On the other hand, others think it is really a great step towards better insurance experience.
People rallied at the state Capitol against the new law that allowed them to have unlimited, lifetime medical benefits.
Moreover, they complain about the end of this particular requirement.
However, supporters think that it will be in great help reducing the high auto insurance rates in the state.
Furthermore, it will certainly affect both sides, but the thing is they will not ever be harmful to anyone.
Therefore, worry no more about the high rates as you will have more options now.
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