There are fundamental changes in Michigan’s no-fault law. Some have already occurred and others will take effect on July 2, 2020. The most important change concerns PIP (personal injury protection) benefits. Prior to the change, Michigan drivers looked to their own auto insurance company for payment of unlimited medical benefits for life, if injured in an auto accident. Now, Michigan drivers have options. You could still choose unlimited medical coverage, or something less, such as a $500,000 or $250,000 limit or even less. Your corresponding insurance premium will be less also.
That sounds great, but if you are at fault in an accident, and cause serious injury to another driver who happened to choose a limited medical benefit option, the injured driver can now sue you for their future medical costs that exceed their coverage. This could never happen before.
The bottom line is that I recommend to all my clients to increase their liability limits, and even purchase an umbrella policy. Medical costs are very expensive, and to a driver who is seriously injured, these costs could easily be seven figures.
Any questions, please call John Alexander at 248-290-5600.