What is no-fault reform?
PIP or “No fault” auto insurance provides coverage for catastrophic medical injuries resulting from an auto accident, providing for first-party medical expenses, lost wages and in-home attendant care, regardless of which driver was responsible for causing the loss. Currently, 12 other U.S. states require PIP coverage.
What does no-fault mean in relation to auto insurance?
Overview. No-fault auto insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault. Under no-fault laws, motorists may sue for severe injuries and for pain and suffering only if the case meets certain conditions.
Is PIP required in Michigan?
PIP is required in Michigan. Also referred to as “personal protection insurance” or “personal injury protection” insurance, PIP is one of the mandatory auto insurance coverages under the No-Fault law. Anyone who drives regularly in Michigan must have it.
Is mi still a no-fault state?
Brief Explanation of Michigan No-Fault Insurance NO-FAULT INSURANCE is required by law in Michigan. Every owner of a car must buy certain basic coverages in order to get license plates. It is against the law to drive or let your car be driven without no-fault insurance.
Why is no-fault insurance bad?
The pros of no-fault insurance are that it ensures quick claim payouts after an accident and reduces the number of lawsuits for minor injuries. The cons of no-fault insurance are that it raises car insurance premiums and makes it difficult for drivers to receive compensation for pain and suffering.
When does no fault auto insurance take effect in Michigan?
On May 30, 2019, Governor Whitmer signed an historic bipartisan no-fault auto insurance reform bill to provide lower rates for Michigan drivers, protect insurance coverage options, and strengthen consumer protections. When Does the New Law Take Effect?
When does DIFs no fault reform take effect in Michigan?
DIFS AUTO NO-FAULT REFORM QUICK FACTS On May 30, 2019, Governor Whitmer signed an historic bipartisan no-fault auto insurance reform bill to provide lower rates for Michigan drivers, protect insurance coverage options, and strengthen consumer protections. When Does the New Law Take Effect?
What do you need to know about no fault auto insurance?
In order for drivers to be able to select certain No-Fault medical coverage levels and options that will become available after July 1, 2020, drivers and/or their family members may need to have health insurance coverage that qualifies as “qualified health coverage.”
What’s the no fault insurance cap in Michigan?
Michigan Assigned Claims Plan – Car accident victims who must claim Michigan No-Fault insurance benefits through the Michigan Assigned Claim Plan (which is designed to assign car insurance companies to provide benefits to victims who otherwise has no source of insurance coverage) will be subject to a cap of $250,000 on medical benefits.