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On June 18, Detroit Mayor Mike Duggan gave a presentation on how Michigan motorists can lower their auto insurance premiums under the new law that takes effect July 2. The Mayor was joined by attorney Mark Bernstein, a member of his firm Shereen Silver, and Leroy Mattic from AAA of Michigan to give this presentation. 

With the new auto no–fault law taking effect, Michiganders can choose the level of personal injury protection (PIP) coverage that works best for them, including opting out completely. 

Starting July 2, you have the right to decide on your medical coverage. Duggan laid out three possible options for updating your policy:  

1. You can keep your existing unlimited PIP policy. 
2. You can opt out of PIP entirely if you and your household already have your own qualified health coverage.  
3. You can buy reduced PIP at $500,000 or $250,000.

Learn more about options for PIP Medical Coverage.  

Option 1: Keep your existing coverage. 

While the new no–fault law does little to cut insurance rates, it provides more coverage options to Michigan motorists for the first time in 48 years. If you like your existing coverage, no action is needed, and you may see a slight increase or decrease to your current bill.  

If you want to change your coverage, you may have to demand it. Duggan recommends consumers shop around for updated insurance quotes. Read Five Questions To Ask Your Insurance Company or Agent. 

Option 2: You’re covered by health care at work. How do you opt out?  

Everyone can save money but those with Qualified Health Coverage (QHC) will save the most. With these plans, you have the choice to opt out of PIP Medical Coverage. Read more about how to opt out.  

One important caveat is that every relative living in your household must have health insurance for car accidents. They can have health care for accidents one of two ways –with qualified health coverage or by having their own no–fault PIP policy. 

Option 3: If you are unable or do not wish to opt out, you don’t have to buy unlimited PIP; you now may choose to buy less coverage. 

July 2, you have two choices you never had before:  

1. $500,000 No–Fault Coverage 
2. $250,000 No–Fault Coverage 

What can you do to lower your insurance cost today? Shop around, compare rates, and talk to different agents about your coverage.  

View additional auto insurance resources from the City of Detroit, or send your questions by text to 313-710-9175 or through this online form. 

Written by Let’s Detroit’s Martha Schmitt