Changes to No Fault Coming July 1, 2020 | The Law Offices of Joumana Kayrouz, PLLC

Ali A. Ajrouch, Esq.

Changes to No Fault Coming July 1, 2020 | The Law Offices of Joumana Kayrouz, PLLC

phone: (248) 557-3645 fax: (248) 200-0645 email: 1000 Town Center, Suite 800 Southfield, MI 48075

            As many are all aware, some sweeping changes to the No Fault system were offered starting July 1, 2020. In my last blog, we discussed the new PIP coverages and what they mean. Remember, PIP benefits are for medical expenses, wage loss, household replacement services, and attendant care. These are benefits you will be eligible for regardless of whether or not you are at fault for the accident. In today’s blog, however, we are going to discuss the importance of bodily injury limits in light of the new changes to the law.

            Choosing your bodily injury limits are going to be extremely important after the July 1, 2020 changes. The reason is intertwined with my last blog which explained that there are option to purchase caps on PIP coverage limits. Now, if an individual does purchase a cap on his or her PIP limits and is in an accident where another driver is at fault, he or she may sue the other at fault driver bodily injury to pay for excess medical expenses, household replacement services, wage loss and attendant care. Therefore, you will want to make sure you are adequately covered in the event this happens.

            Next, it is important to know the changes in bodily injury limits. Bodily injury coverage is reserved for a situation in which you are at fault for an accident and are sued. Previously, the minimum coverage for bodily injury limits was $20,000 per person/$40,000 per accident. There were also options for $50,000 per person/$100,000 per accident and $100,000 per person/$300,000 per accident and beyond. Now, under the new fault law, the standard coverage will be $250,000 per person/$500,000 per accident. There will an option where you have to actively sign off to reduce your coverage to $50,000 per person/$100,000 per accident. We strongly recommend against reducing your coverage. You should be purchasing a minimum of the $250,000/$500,000. As we’ve stated in previous blogs, you never really know when an accident happens. With the changes in the law, if you cause an accident that causes death or seriously bodily injury you could be exposed for a lot of money for not only the economic damages stated above, but also pain and suffering or even wrongful death. Auto accidents can cause severe injury and expensive life-long treatment, and you want to be sure to have enough coverage in case you find yourself in the situation where a person with limited PIP coverage sues you for negligence. For more questions feel free to call or e-mail us at anytime an we can advise you on the best option for purchasing health insurance.


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