Understand the New Michigan Insurance Laws

Here are some facts that may affect your policy

A lot of things are changing for Michigan drivers and their insurance policies. Starting July 1, 2020, you'll be able to change your level of coverage and may see lower premiums for driving responsibly. Paw Paw Collision wants you to be informed.

The biggest change on the way is the level of Personal Injury Protection (PIP) you'll be required to hold. This coverage takes care of medical expenses, but many people already have health insurance. In some cases, Michigan drivers will be allowed to significantly drop their amount of PIP coverage, leaving them with lower premiums. Here is a breakdown of PIP coverage savings:

  • Unlimited PIP Coverage (same as current) - Save around 10% on PIP
  • $500,000 Max Coverage - Save around 20% on PIP
  • $250,000 Max Coverage - Save around 35% on PIP
  • $50,000 Max Coverage - Save around 45% on PIP

Be sure to look over your insurance policy soon-the new laws take effect on July 1st, 2020.

Premiums based on your driving record

Premiums based on your driving record

In most states across the nation, your premiums are based on a variety of information. Not only is your driving record taken into account, but also your education level, age and income. Soon, Michigan drivers will only have their driving record taken into account. This is expected to save many drivers a lot of money on their insurance and convince uninsured motorists to sign up for insurance.

Subheadline: Holding insurers accountable for high prices

High prices can be a burden for drivers, making it hard for them to obtain the insurance coverage they need. However, the new laws in Michigan will require every insurer to have their rates approved by the state. Michigan will hire six independent companies to audit the premiums laid out by insurers to make sure that the rates are reasonable.

If you have questions about any of these changes, get in touch with us now. We're happy to provide you with more information.