Car Insurance and You–Is saving a few dollars on car insurance really worth losing lifetime medical coverage?

Feb 12, 2022 | Car accident, Insurance Issues

Under the recent changes to the No-Fault law, car owners can now choose to keep their lifetime coverage for any medical bills related to an injury they suffer in a car crash; or they can choose to have less coverage, which will save them some money but may expose them to having to pay enormous medical bills if they or a family member are seriously injured in a crash.

Medical bills are paid as part of your Personal Injury Protection (PIP) insurance coverage. With unlimited PIP coverage, you never have to worry that your medical bills related to your injuries will always be covered. 

It is important to note that any savings you get by choosing medical coverage less than the full PIP coverage does not apply to your entire policy, but only to the PIP portion (around 45%) of your total insurance cost. For example, if you paid $2,000 for your total automobile insurance in May, 2019, under the new law, if you picked a $500,000.00 PIP policy instead of full, unlimited PIP coverage, your savings would likely only be $180.00. Meanwhile, you and your family are now exposed to possible bankruptcy if you are involved in a crash resulting in very serious injuries, and you can now be sued for the other person’s medical bills if you caused the crash.

Saving a few bucks on the PIP portion of your auto insurance policy is not worth the possible catastrophic financial loss you could be faced with after a serious car crash.

To have great peace of mind as you travel down the road, knowing that you and your family riding in your car are fully protected for any injuries that may happen on your trip, we strongly recommend you keep FULL, UNLIMITED PIP/medical coverage. See our article on that topic here and watch our video on that topic here.

If you have  any questions about car insurance or the Michigan No-Fault law, be sure to contact us. We have been specializing in No-Fault law ever since it was created in Michigan in 1973. No one knows Michigan No-Fault insurance or car accident law better than the attorneys at Atkinson Petruska Kozma Hart & Couture, PC. 

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