With the highest car insurance rates in the entire country, Michigan residents are warned to use caution when choosing and buying PIP insurance
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The historically high insurance rates in Michigan are expected to be decreased after the systemic reform bill had been signed into law at the end of May 2019. However, law firms such as Thurswell, are warning consumers to avoid getting caught up in the idea of saving a few hundred dollars initially when purchasing PIP insurance policies.
Lansing based lawmakers often worked through the night in the latter part of the spring, and Michigan Gov. Gretchen Whitmer achieved a deal with the Republican leadership in the legislature to help provide Michigan motorists with a menu of options for personal injury protection, or PIP, coverage.
According to the new law, which is set to go into effect on July 1, 2020, drivers are able to select the level of Personal Injury Protection or PIP coverage they want to carry. The options include unlimited coverage, a $500,000 option, a $250, choice, and a $50,000 option for those on Medicaid and whose family members have active health insurance.
Some have equated this to a difficult process with choosing the wrong option causing long term issues. It’s difficult for a consumer to know if the one limited case where they are able to get $50,000 in medical coverage versus $500,000 or $250,000 versus the current system of unlimited medical coverage for the remainder of their life.
Educators have agreed that consumers need to begin by educating themselves right away before it’s time to select a new plan that’s a good fit for them. When the legislation was initially introduced, it contained more than 300 pages. Attempting to read through this, even by legal professionals, was a challenge. The issue is extremely complicated and difficult for anyone to understand. Even attorneys can’t make sense of everything, and the average consumer is going tobe extremely confused.
The majority of lawmakers billed this plan as a cost-saving measure, which allows individuals to select the level of PIP coverage they need. It also prohibited several non-driving factors, including a person’s FICO credit score, marital status, or zip code, from being used by an insurance company to determine the rates charged.
Even though the new options and changes take place in 2020, the cost of insurance is going up in 2019. Currently, the cost of Michigan Catastrophic Claims Association, called the MCCA, is increasing by $220 per vehicle, annually. The MCCA is a group that’s responsible for overseeing the medical benefits for individuals who are injured during a devastating or catastrophic accident when the care needed has costs that exceed $580,000.
With the new automobile no-fault law that was passed by the Legislation and then signed into law by Gov. Whitmer in the latter part of May 2019, drivers have the ability to select the level of medical coverage they carry starting in the summer of 2020. It’s expected that has the law becomes effective, the MCCA fee is going tobe reduced, but it’s still unclear how much it is going to drop.
The problem is that the money a person can save up front with lower PIP coverage amounts would be spent quickly if someone was involved in an accident and had to cover the medical costs. It’s important for drivers to be aware of what the possible liability would be if they opt out of PIP coverage altogether.
Contact Info:
Name: Jerry Thurswell
Email: Send Email
Organization: Thurswell Law
Website: https://www.thurswell.com/
Source URL: https://marketersmedia.com/its-buyer-beware-when-choosing-personal-injury-protection-coverage/88892873
Source: MarketersMEDIA
Release ID: 88892873
