PIP MEDICAL
We now have optionsAfter July 2020, Michigan gave us options on the medical section of our policies.
This section has always been so expensive and their intent was to decrease cost, so instead of just lifetime unlimited benefits, we could pick a limit for a premium reduction. |
Those options are...Option 1: Unlimited (the old limit we all had)
Option 2: $500,000 per person, per accident Option 3: $250,000 per person, per accident Option 4: $0 for chosen or all drivers, $250,000 for those not excluded Option 5: $50,000 for a household with Medicaid Option 6: $0 for all drivers with Medicare |
What you should pickOption 1, Unlimited.
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Why pick Option 1, Unlimited?
Health policies end. PIP doesn't.
Your health insurance staying active can depend on you paying the premium or perhaps remaining employed to be eligible for the employer health plan. What happens when you are no longer employed? Your income stops, making payment for the policy you bought yourself difficult, maybe impossible to pay. OR your employer has to let you go, making you ineligible. When that policy ends, so too does your coverage. Now it's all paid out of your bank account, and eventually medicaid. Deductibles, Caps & Co-Pays Your health insurance has a premium, but also has out of pocket expenses, even limits on how much coverage is provided. Relying in part or entirely on your health insurance would require money out of your pocket to pay for your injuries. The less coverage, the more likely you pay for the injury. Health Insurance Doesn't Pay for it All. PIP Does. Health insurance regularly does not pay for:
Average Cost Per Person in PIP Medical Losses: $300,000. Yes, some accidents cost less, but some cost way more. Having financial responsibility fall to you would be scary. And the more family members involved, the bigger the burden would be. |
BODILY INJURY
What Changed?
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How to Choose Your Limit:Add up all your assets. Multiply by two. Then round up to the next level from the table below
What are assets? Read here: What are Personal Assets? |
These issues leave an injured party with out of pocket expenses.
Comparative Negligence: The State also made legal "comparative negligence", which allows a person to be sued for whatever their percent of shared fault in an accident was (it used to be you had to be more than 50% at fault). As a result, the injured party is more likely to sue, and sue for greater amounts. For these reasons, the minimum coverage standards rose. Our agency has raised our minimum bar to the $250,000 per person, $500,000 per occurrence threshold. However, you have options all the way up to $1,000,000 per person and $1,000,000 per occurrence, and more yet with an umbrella. |