Michigan Auto Insurance Reform Creates Lots of Options for Consumers
Michigan’s auto insurance reform has created a lot of options for Michigan drivers. Every auto insurance policy providing statutory coverage in Michigan includes four types of Personal Injury Protection (PIP) benefits:
Allowable Expense benefits cover medical and rehabilitative expenses, attendant care and other expenses related to the care and treatment of a MVA claimant. As of July 2, 2020, consumers can elect their level of coverage for allowable expenses:
$50,000 (if the insured is enrolled in Medicaid and his/her spouse or resident family member has a qualified health insurance plan or is insured by other PIP coverage);
$250,000 per person per accident;
$500,000 per person per accident;
Unlimited coverage per person per accident; and,
No coverage (if the insured, spouse, or resident family member has Medicare or other qualified health insurance plan).
An insured can select either coordinated or uncoordinated allowable insurance benefits. Coordinated benefits for a person with health insurance means that the health insurance will be the primary payor and the PIP insurer is a secondary payor.
Wage Loss includes benefits that are payable for lost income that an injured person would have received if they were not in an accident. Wage loss benefits are payable for three (3) years at 85% of gross wages up to a statutory maximum amount.
Replacement Services include benefits to pay for services that an injured person would have performed if they were not in an accident. Replacement service benefits are payable for three (3) years at $20 per day.
Survivor Loss benefits includes money that is sent to the dependents of the victim in the event of a death resulting from an auto accident.
In addition to these four types of PIP benefits, there is also optional underinsured/uninsured motorist (UM/UIM) coverage. This coverage protects the insured if the tortfeasor lacks insurance or has insufficient insurance to cover the loss. UM/UIM coverage is not statutorily required, but highly recommended.
About Alexander & Angelas, P.C.
Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.
A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.
Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees, and strives to resolve matters within one year from initial case assignment.
Visit Alexander & Angelas online at https://www.alexanderandangelas.com/ for more information. Partner Peter A. Angelas is available to discuss a confidential matter.
