Michigan auto insurance changes in 2020

[RetMD21]

The no fault insurance law is changing with those changes taking place in July. Michigan has the highest average insurance costs in the country (and yes, you can shop around)

The new factor that you can control is the level of PIP. You can keep the unlimited that has been mandated in the past, You can reduce it (500,000 , 250,000) or you can drop it if you have Medicare or qualifying medical insurance.

I was thinking of dropping the coverage to $250,000. Are others looking at this? Part of the PIP charge covers lost wages which might be more important for some one who is not FI.

This was discussed tangentially in another thread. I didn't see another Michigan specific insurance thread.

 

[DrRoy]

We have to deal with these changes too. Our insurance agent was going to set up meetings with everyone to go over the details, but with covid that is on hold.

 

[Jerry1]

I'll price it out when pricing is available, but my inclination is to buy the unlimited PIP. I'll also have to see how this coordinates with my umbrella insurance. Bottom line is that I'm not going to decrease my protection against people suing me. Generally, the cost of insurance is not that bad. The collision and comprehensive tend to be the high cost areas in car insurance.

 

[Shredder]

We have AAA for autos, home and umbrella but and haven't heard a peep from them. Although its entirely possible I overlooked some kind of notice.

 

[misanman]

Here are the options outlined by my agent:

1. Keep unlimited medical coverage and still receive a reduced premium
2. Choose a lower limit of $500,000 or $250,000 and further reduce the premium
3. No Coverage: In order to select No Coverage the following must be true:
The applicant or named insured has coverage under both Medicare Parts A and B.
Any spouse and all resident relatives have qualified health coverage or are covered under another auto policy with PIP medical coverage.
Proof that the named insured is enrolled in Medicare parts A and B will be required to confirm eligibility. If there are additional household members, proof of qualified health coverage or Auto policy Declarations will also be required to confirm eligibility.

 

[travelover]

I bailed on Michigan 3 years ago, but as I recall, the law said that auto insurers had to pay medical providers the full rack rate for any medical claims, as opposed to the reduced rates that medical insurance companies pay. Did that part of the law change?

 

[RAE]

The no fault insurance law is changing with those changes taking place in July. Michigan has the highest average insurance costs in the country (and yes, you can shop around)

The new factor that you can control is the level of PIP. You can keep the unlimited that has been mandated in the past, You can reduce it (500,000 , 250,000) or you can drop it if you have Medicare or qualifying medical insurance.

I was thinking of dropping the coverage to $250,000. Are others looking at this? Part of the PIP charge covers lost wages which might be more important for some one who is not FI.

This was discussed tangentially in another thread. I didn't see another Michigan specific insurance thread.

I have Michigan auto insurance, and, although I have not researched this thoroughly yet, my initial thought was to drop it completely. But I do not have Medicare Part B, so maybe I can't do that? I might have to go with the $250,000 option, based on what I understand. Here is what I just read on the michigan.gov website:

PIP Medical Coverage Options
There are six PIP medical coverage levels available to Michigan drivers. Under these limits, this amount is the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.

1. Unlimited coverage
2. Up to $500,000 in coverage
3. Up to $250,000 in coverage
4. Up to $250,000 in coverage with PIP medical exclusion(s)
   Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.
5. Up to $50,000 in coverage
   Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy or health insurance that will cover auto accident injuries.
6. PIP medical opt-out
   Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.

 

[augam]

I bailed on Michigan 3 years ago, but as I recall, the law said that auto insurers had to pay medical providers the full rack rate for any medical claims, as opposed to the reduced rates that medical insurance companies pay. Did that part of the law change?

Boy I sure hope it changed. Friends of ours the Dad is one of Regional Managers for AAA in the state told us years ago after the DW and I asking why rates so high - his words were exactly that. He said most if not all the time in trauma related admittance to ER 1st question was asked "was this the result of an auto accident?"

Told us $400 MRI were billed at $2000 or more for auto accidents. Costs were totally out of hand.

They and many other insures had a summit in Traverse City years ago and proposed changes to bring down rates including charges typical what similar trauma related services would be for auto accidents and many other things.

They then re convened with the then Governor - RS after a month of research and the findings were that 30 - 40% hospitals in the state would more than likely fail due to restructuring of billing.

 

[Backpacker]

Just had this conversation with my agent today. I opted for $500K instead of unlimited. The mcca fee of 200 a year goes away, and about 60 bucks a year reduction in premium. If I kept the unlimited the mcca fee would still be charged but only $100 per year. 20 some years ago I had insurance in Ohio and was shocked upon moving to Michigan by the cost of insurance. I do have an umbrella policy and must keep liability coverage at 250/500k for that to stay in force. My understanding is liability and umbrella is not affected by the mcca change.
*mcca= Michigan catastrophic claims association .

 

[RetMD21]

I bailed on Michigan 3 years ago, but as I recall, the law said that auto insurers had to pay medical providers the full rack rate for any medical claims, as opposed to the reduced rates that medical insurance companies pay. Did that part of the law change?

Right, they are basing it on a multiple of Medicare rates from what I understand something like 2- 25.5 x vs whatever the hospital charged

My agent set up an appointment to discuss this but bailed and didn't notify me. (I thought we could do it by phone.

 

[RetMD21]

I fond this on the 'CIA insurance website Mandated reductions as of July 1


Unlimited PIP coverage- 10% reduction
$500,000 of PIP coverage- 20% reduction
$250,000 of PIP coverage- 35% reduction

https://ciainsurance.com/how-michigans-auto-reform-will-affect-policy-renewals-in-2020/

 

[RetMD21]

I have Michigan auto insurance, and, although I have not researched this thoroughly yet, my initial thought was to drop it completely. But I do not have Medicare Part B, so maybe I can't do that?

1. Unlimited coverage
2. Up to $500,000 in coverage
3. Up to $250,000 in coverage
4. Up to $250,000 in coverage with PIP medical exclusion(s)
   Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.
5. Up to $50,000 in coverage
   Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy or health insurance that will cover auto accident injuries.
6. PIP medical opt-out
   Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.

I checked with my medical insurance agent and my (non medicare) policy qualifies. I can print a coordination of benefits letter from the website to give to the auto insurer. I am not sure if I will go for the $250,000 or just opt out

 

[RetMD21]

I have > $6,000 deductible so I will either need to change that or buy some PIP coverage (according to the state website) https://www.michigan.gov/autoinsurance/0,9555,7-405-96601_96926---,00.html