Auto Insurance Rules Change July 2! Good News?
Michigan's auto insurance rates, some if not the highest in the nation, are in for a big change come July 2. You may save a bunch of money!
The main change will be that starting on July 2, 2020, none of us will be forced to have unlimited medical coverage for car insurance. Now, insurance companies must reduce the premiums for PIP, Personal Injury Protection.
Also, where you live or what your job is can no longer count against you and raise your rate. In addition, marital status, credit score, home ownership, and education that have affected your rate in the past no longer cannot. Sounds pretty good, right? Not so fast!
Fox17 reports officials are saying please, please, please do your homework. Insurance and State experts are saying there are so many twists and turns with the new law, that reading the fine print has never been more important. Don't forget, the rate reduction only applies to PIP, so make sure you know what your coverage is.
Your current policy won't just simply go down if you want to opt out of unlimited coverage. The new rates will apply to new policies issued after July 1, 2020.
Some of the loop hole/dangers of reducing PIP coverage are that now you could be sued if you hit/injure someone. There are waivers you have to sign if you opt out, and many other things you need to make sure you fully understand.
Confusing? You bet. A good insurance agent should be able to walk you through the process.
So...Don't jump, take your time and make an informed and educated decision. You'll be happy you did.