Information provided by Nulty Insurance

The reformed Michigan no-fault law now offers drivers more choices, as well as changes to their auto insurance. While some of these changes will be phased in over time, most will go into effect on July 2, 2020. Our partner Nulty Insurance explains:

What is changing?

Personal Injury Protection (PIP) benefits
Most of the new law goes into effect on July 2, 2020. At that time, you will be given choices in the amount of coverage you wish to purchase for medical costs related to auto accidents. Everyone can choose to keep the current unlimited, lifetime benefit coverage that we have had for decades, or you can choose to purchase lower limits of $500,000 or $250,000. Some people may be able to purchase as low as $50,000 if you have Medicaid. You may be able to choose to decline all medical coverage if you have Medicare or some health insurance plans. Your insurance company will send you option forms about 90 days before your renewal. More details about your individual policy will be provided then.

Liability Coverage
There will also be choices to be made about your liability protection if you’re sued. Again, more details will be sent to you about 90 days before your policy renews after July 2, 2020.

Premium Rate Changes
There are several rating factors that may change your rates. Some of the factors that can no longer be used are credit score, education level, homeownership and ZIP code. We do know that the Michigan Catastrophic Claims Association (MCCA) charge will be reduced from a current charge of $220 to $100 per car, per year if you choose to keep unlimited medical coverage. The charge will be eliminated completely if you choose any medical coverage other than the unlimited.

If you have questions about these changes or what they mean for you and your policy, please reach out to your insurance provider—or Nulty, as they are always willing to help our members. In fact, you can learn more about the no fault changes on their website.

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