Proposed changes to the No-Fault insurance policy

Sept. 28, 2011 - PRLog -- Grand Rapids, Mich. September 28, 2011 – Since its enactment in 1956, No-Fault insurance dramatically changed the way that medical benefits have been provided to drivers in the state of Michigan. What does no-fault auto insurance works? Basically, in the incident of an accident, each driver’s insurance agencies will cover all damages and medical treatment for their customer.

Governor Synder sent his bill calling for sweeping changes to the “no-limit” medical benefits currently provided by Michigan no-fault insurance. The proposed bill will allow consumers to choose the level of Personal Injury Protection (PIP) under their no-fault policy. Also, implementation of a fee schedule for medical services would be implemented. This set’s reimbursement amounts for medical treatments and services, similar to workers compensation’s fee schedule. For more information about the proposed changes, click here.

Ultimately, the passing of this bill will cut the cost of auto insurance. Once the bill is passed, the change will occur with currently insured drives at the time of renewal. These individuals will be allowed to select the level of PIP coverage they desire to have. The coverage ranges from $250K and $5 million.

In case of a catastrophically injury accident, once the PIP limit has been exhausted, the insured’s healthcare would begin covering the expenses. The insured would be covered between their no-fault policy and healthcare policy, but the question is, do they have both policies? Medicare and many group policies exclude injuries sustained in car accidents. It is important to ensure that an individual will be covered through having both auto and health insurance.

Access Insurance Agencies recommends consumers get a complete review of their auto insurance to see how these changes will impact you.

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