Key Points in This Article:
- For the first time in almost 50 years, drivers and owners can now be sued for the medical expenses they cause following a car crash.
- The DIFS released the Michigan Choice of Bodily Injury Liability Coverage Limits form motorists will need to sign beginning in July 2020.
- The form explains what bodily injury coverage is and how the default level is $250,000/$500,000.
- The form also explains that a person can select coverage as low as $50,000 per person and $100,000 per accident, but if you do, you are opening up yourself to huge financial risk.
New Bodily Injury Forms Released by DIFS and The New Michigan No-Fault Law
On November 18, 2019, the Michigan Department of Insurance and Financial Services (DIFS) released the form motorists will have to sign beginning July 1, 2020 when purchasing new Michigan car insurance policies.
This form is important because for the first time in almost 50 years, drivers and owners can now be sued for the medical expenses they cause following a car crash. Given how expensive medical care is, it’s vital every Michigan driver purchase enough liability coverage to protect themselves.
Bodily injury (BI) coverage is the insurance that covers you for damages you or someone driving your car causes following a car crash. The current bodily injury minimum in Michigan is $20,000 per person or $40,000 per accident. However, starting next July, the default amount changes to $250,000 per person and $500,000 per accident. This large increase reflects inflation as well as the huge medical expenses that bodily liability coverage will now have to cover following many Michigan car crashes. The DIFS form does a good job explaining the risks of not adequately purchasing enough insurance.
Get your copy of the new MICHIGAN CHOICE OF BODILY INJURY LIABILITY COVERAGE LIMITS Form here.
How New Michigan Law Changed Michigan Car Insurance
Last spring, the Michigan governor signed a new law that completely changed Michigan car insurance. Currently, all Michigan car insurance policies offer only unlimited medical PIP (Personal Injury Protection) coverage, meaning the car insurance carrier must pay for all medical expenses related to a car crash not covered by health insurance. There is no dollar limitation. This unlimited PIP coverage is an incredible benefit, but it is also partially the reason why Michigan car insurance is one of the nation’s most expensive.
However, under the new law, beginning in 2020 Michigan drivers can select different levels of PIP coverage with caps. These levels include:
- $250,000 PIP coverage;
- $500,000 PIP coverage;
- Unlimited PIP coverage;
- $50,000 PIP coverage – for Medicaid beneficiaries whose family members live in the same household and have qualified coverage or are covered by another auto policy;
- No PIP coverage for proper Medicare beneficiaries or individuals whose private health insurance pays for all auto accident related treatment.
Given some people will only have $50,000 in medical PIP coverage, or no coverage at all, in many situations an injured person will now be able to turn to the negligent driver and/or vehicle owner for the payment of hospital and medical expenses.
This can leave people who cause an accident on the hook for tens of thousands of dollars in medical expenses. The new DIFS form explains this reality in an easy to understand way.
Details of the 2020 Michigan Choice of Bodily Injury Liability Coverage Limits Form
The form explains what bodily injury coverage is and how the default level is $250,000/$500,000. The form also explains that a person can select coverage as low as $50,000 per person and $100,000 per accident, but if you do, you are opening up yourself to huge financial risk. According to the form, these risks include:
- Your assets may be seized, or a lien may be placed on your home;
- Your wages may be garnished, or
- Your driver’s license may be suspended.
The form then requires each person who wishes to purchase less than the default policy of $250,000 per person or $500,000 per accident to read and initial at three different places, to confirm they understand they are opening themselves up to huge financial losses. The applicant then has to sign and date the form.
Get your copy of the new MICHIGAN CHOICE OF BODILY INJURY LIABILITY COVERAGE LIMITS Form here.
The form is a good development. It is important everyone understand what is coming. If you cause an accident, or a family member borrows your car and causes a bad crash, the medical bills that result will be your responsibility. Without adequate insurance coverage, the financial consequences could be horrible.
The Michigan car accident lawyers at the Lee Steinberg Law Firm, P.C. recommend all drivers and motorists -whether in Detroit, Flint, Saginaw, Grand Rapids, Traverse City and all points in between- purchase at least $250,000 per person/$500,000 per accident in Bodily Injury insurance. This is a minimum.
If you have assets above that amount, like a pension or a home, then you should purchase more.
Feel free to give us a call if you have questions about the new Michigan no-fault law, the new insurance policies that will be sold, or any other questions about Michigan car crash injury law. Call us toll free at 1-800-LEE-FREE (1-800-533-3733). The call is free and there is no fee until we win your case.
Get your copy of the new MICHIGAN CHOICE OF BODILY INJURY LIABILITY COVERAGE LIMITS Form here.
