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New car insurance policies for Michigan drivers goes into affect Thursday

Published: Jul. 2, 2020 at 4:09 PM EDT
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MARQUETTE, Mich. (WLUC) - For the first time in 40 years, a new law will enable Michigan drivers to make choices regarding their car insurance policies.

“Last year, Governor (Gretchen) Whitmer was able to work with legislature for a bipartisan historic change to law, and come up with a system that still preserved the highest benefits in the nation but also gave drivers choices so that they can make the best choice for their families,” said Anita Fox, the Director of the Department of Insurance and Financial Services.

Starting Thursday, two major changes will affect Michigan drivers.

The first, and most important, deals with drivers and their families Personal Injury Protection, or PIP, medical coverage when injured in an accident.

“You will still be able to choose unlimited lifetime benefits, but you could also choose $500,000 per person per accident, $250,000 per person per accident or if you’re on Medicaid, $50,000 per accident,” explained Fox.

The second change Michigan drivers will see involves a person’s need for liability insurance if they are at fault in an accident on all policies issued or renewed today and moving forward.

“But if you don’t renew right now, it doesn’t mean you can’t,” reassured Fox.

Drivers can review to see how these new changes will affect them, even if their policy doesn’t renew again until September.

Drivers will also be able to coordinate between their health insurance and auto insurance.

“This allows you to do more than you used to do, which was say I’m going to have my health insurance paid first so I can save some money,” explained Fox. “This says if I want to rely just on Medicare, just on my health care, I can do that and not pay that portion of my auto premium.”

Michigan drivers who are uninsured are strongly encouraged to use this time to get insured.

Starting Thursday, and for the next 18 months, there’s a pardon where drivers won’t be penalized by insurance companies for not being insured, which will lessen the restrictions for drivers when choosing their options.

Copyright 2020 WLUC. All rights reserved.

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