Sunday, December 4, 2022  

Michigan Auto Reform

Good Afternoon,
As we work through these unprecedented times, I wanted to take a moment to Thank You for your business with us. Please be assured that we appreciate the confidence you have placed in us and take our responsibility to you very seriously. We work hard every day to be sure we have the companies, resources and training to get you the Insurance coverage you need at the lowest possible cost. By being a client of Preferred Insurance you have access to a multitude of the top ranked companies in the industry, companies like Citizens, AAA, Progressive,Allstate, Liberty Mutual and Frankenmuth just to name a few. We can shop to get you the very best coverage and price.
Another reason for writing you at this time is to get you ready for the Michigan Insurance reform law which is scheduled to roll out starting July 2, 2020. I want to give you a brief overview of the up coming changes and help you be prepared for the choices you will need to make to best take advantage of the new law. Currently every insured driver in the state has Unlimited medical and work loss if they are injured in an auto accident and you have no choice in this coverage. This coverage and the corresponding MCCA fee that goes with this coverage is a driving force in the high cost of Michigan insurance, with the new law you will have the choices outlined below.
Personal Injury Protection (PIP) First off you will have options for your Personal Injury Limit beside the current unlimited limit. Everyone will have the option to choose Unlimited, $500,000 or $250,000. If you choose a lower limit it will reduce your cost but will also put you in a position where you could have bills in excess of your coverage.
If you are on Medicaid you will be eligible to choose a $50,000 option. This option will only be available to those on medicaid.
As you consider reducing your coverage's, please remember right now you have unlimited coverage for Medical bills, lost wages and long term care regardless of who is at fault for the accident. Its important that you know what you are giving up when you choose a lower limit.
The second major change is BI ( Bodily Injury) This coverage takes care of Law suits that can be brought against you for accident that you cause. Under our current system there are very limited circumstances where you can be sued. However under the new law you will now be able to be sued for BI if the injuries you cause exceed the PIP limit chosen by the person you were in the accident with.
Example; You are at fault for an accident and the injured party is going to need $2,000,000 to cover their medical bills and work loss, they have chosen the $250,000 PIP limit, you can now be sued for the additional $1,750,000.
The State Minimum BI limit will be raised from the current $20,000/40,000 to $250,000/$500,000. It will be important that you carry a very high BI limit and probably even a Liability Umbrella to protect yourself from the new potential law suits.
It will be important that you carefully read all correspondence that you receive from your individual insurance company. Your selections with these changes will require your signature each time your policy renews. If you use email it would be very helpful if you would get your email address to us so we can keep you informed as we get closer to the rollout.
This outline of changes is in no way everything in the new law, but it does represent the major changes you need to be thinking about as the time approaches.
I apologize for the length of this letter but I felt it was important that you were properly informed about the up coming changes your options and additional exposures with the new law. You can rest assured that we are prepared to help you navigate these changes and help you take full advantage of the upcoming roll-out. We are attending classes, monitoring Dept of Insurance changes and getting prepared to help you, when the time comes that you have to make your choices.
Again Thank You for your Business,
Paul Shingledecker
Preferred Insurance Services Inc

132 W Michigan Ave
Three Rivers, MI 49093
(269) 273-1597

303 E. Division
Dowagiac, MI 49047

1613 E Chicago Rd
Sturgis, MI 49091

8045 Clyde Park Ave SW
Byron Center
Grand Rapids, MI 49315
120 Allegan St.
Otsego, MI 49078
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