No Fault Reform FAQs
We all want to save money, and the initial premiums look good. However, there is No Guarantee you will save premium. In some cases, additional coverage will be needed for your protection.
Signature forms for both Bodily Injury Liability and Medical will be mailed to you. It is important that you contact the Schuberg Insurance Agency to review your choices.
With the new changes, there is more burden of coverage on your policy. By asking you to sign, the State of Michigan is telling you how important liability will be moving forward. You as an insured have more Bodily Injury exposure when you are At-Fault.
One of the new Reform changes is if you are At-Fault in an auto accident, you can be sued for the percentage you were At-Fault. For example, if I am 60% At-Fault, I can be sued for 60% of the medical cost of the injured party.
This is unique to everyone. You need to carry enough liability coverage to protect all of your assets. Other products can also bolster your protection and broaden coverage. For example, a personal Umbrella can provide an additional $1,000,000 protection. Contact the Schuberg Insurance Agency to have a discussion.
If I select a higher liability coverage for Bodily Injury, does my Uninsured and Underinsured motorist coverage increase too?
No, Michigan is not a roll-up state, which means that Uninsured and Underinsured motorist coverage will remain the same if you don’t take action. It is important that if you are considering to increase your bodily injury, that you consider matching your other liability coverages, especially uninsured and underinsured motorist coverage. Some companies also offer Personal Umbrella products that can provide additional uninsured and underinsured motorist coverage. Contact the Schuberg Insurance Agency for additional information.
It’s important to know which option you are eligible to select. Unlimited coverage has stayed the same as it was with No-Fault and is the best coverage available. Other options may offer savings and work with your current Qualified Health Care Provider (QHC), Medicare, and Medicaid. Contact the Schuberg Insurance Agency for additional information.
The Answer is “YES”. If eligible for a Qualified Health Care Provider (QHC), you may need to provide a letter from your provider at each renewal. Medicaid is eligible for a $50,000 coverage option, and Medicare Parts A & B are eligible for a “No Coverage” option. The insurance provider will need a copy of your card.
Yes, it is increasing from $1000 to $3000.
No-Fault used household members to determine who was eligible for coverage. A person can have many households. Such as a college student away from home and living on campus all year round. You can only have one Domicile. This is very important.
Back to the college kids away at school. If they are living full time at college, your child is now domiciled at college. This means that they would be ineligible for medical coverage under your auto policy. This can also play a big part in divorces. Contact the Schuberg Insurance Agency for additional information.
No, drivers who enter Michigan will not receive PIP unless they have a licensed, registered, and insured vehicle in MIichigan.
Your insurance will change to reform in one of two ways. The first is by contacting our agency to make a mid-term endorsement to switch your coverage. The second way is you auto policy will automatically renew to the reform coverages for any renewal after 7-1-2020. Both of these changes will require signed forms for liability (Bodily Injury) and for medical (PIP).
The answer is YES. Whether you have Medicare Parts A & B or if you have a Qualified Health Care plan (QHC), the insurance company will need proof. Some of the company forms do not say this, however please look at the “Who can opt out of PIP” document above.