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Michigan No Fault Reform

On May 30th of 2019, Michigan Governer Gretchen Witmer signed into law a sweeping change of the States No Fault Laws. Because of Michigan’s unrivaled Unlimited PIP coverage, rates have soared to become some of the highest in the country under the No Fault Law since its inception in 1973. But some have argued that the benefits out way the cost, especially those who have realized the benefits of such great coverage. So for years, our legislature struggled to compromise on how to change the system without losing too much.

The intent of the new law was to offer drivers of the State of Michigan some much needed rate relief, while still giving them the option to choose different levels of Medical Coverage under the Personal Injury Protection (PIP) coverage. As with any major overhaul, there had to be some compromise. So the law included many other amendments, such as the creation of an anti-fraud task force, set fee schedules for medical claims, elimination of the use of marital status, zip code, gender, and credit score, and a call for transparency from the Michigan Catastrophic Casualty Assoc. (MCCA). With the maority of the law taking effect on July 2nd, 2020.

Now behind the scenes, there are some things that the general public will need to also be aware of. With the new options on Medical, if not explained properly by your agent, you may be unknowingly putting your family at risk. I have recorded a series of webinars on the subject and posted them to our YouTube page. Although these videos are Carrier specific, most of the information is general in nature. I hope you find the answers you need, but if you would like more information or to discuss your unique situation. We do offer complimentary Insurance Reviews. Schedule your review now.

Michael Vereecke, CLCS
Michael Vereecke, CLCS

President of Customer First Insurance Group,
Commercial Lines Coverage Specialist (CLCS) Designated, and Property and Casualty Licensed since 2009

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