Michigan no-fault auto reform is here...
3 main topics affected by no-fault reform
What is a resident relative?
What your specific carrier is doing...
What's your no-fault persona?
The Smith Family
a.k.a "Legacy Builders": Risk-averse with assets
"We are unsure about what auto reform might mean for Michigan drivers. Many drivers are likely to opt-out of Personal Injury Protection (PIP) Medical, but we will likely stay at unlimited or choose a very high limit. We aren’t fooled by the headlines that are touting savings for MI drivers, and wouldn’t be surprised if we end up paying more. There are a lot of politics involved. Based on what we have been reading, we will likely consult with our agent about whether the unlimited or $500k option makes the most sense for us, and whether our current liability coverage provides the protection we need. We may even consider a higher limit of umbrella coverage."
The Johnson's Family
a.k.a "Life achievers": Seniors with medicare
"We were excited to learn that reform was coming to the state of Michigan. Finally, some relief from the high premiums we have been paying all these years. We do not drive all that much, and our income is limited to retirement savings, social security, and pension. There are so many messages in the news and online about reform — it’s difficult to know what the right option is. Since we are both on Medicare, we may want to opt-out of PIP coverage to save money. We plan to call our agent as soon as the new choices are available to see if our premium would go down if we opt out of PIP. We think we have enough liability coverage for right now."
The Adamson family
a.k.a "Purposeful Planners": Balance coverage vs. price
"We have been reading about Michigan auto reform and think it will
be a good opportunity for us to reduce our insurance out-of-pocket
expenses. We both have health insurance through work and think we
may be adequately covered, so we want to understand our choices.
We plan to call our agent when our policy renews to explore
coverage and price options.
We want to have enough coverage, but if we can save money
on auto insurance, we can focus more on paying off our student
loan debt or our mortgage. It’s a balancing act. So we will
do our own research, listen to our agent and make the choice
that is right for us."