State Representative Brad Paquette of Niles is working to explain the auto insurance reforms coming to Michigan next year. On Wednesday night, he held a tele-town hall with state Representative Jason Wentworth to answer questions from callers. Come July 1 of next year, drivers can choose what level of personal injury protection they want in their policies, rather than having unlimited coverage as they do now. Paquette said you can opt for $50,000 of PIP coverage and see a 45% reduction in those costs. Wentworth went on…
“If you were to go to the $250,000 level of your PIP coverage, you would see a 35% reduction,” Wentworth said. “Then it goes to 20% for $500,000. If you want to stick to the unlimited option that you have now, you would see a 10% savings.”
That’s assuming you have health insurance that would pay for injury care. Wentworth said those on Medicare could get injury care through that program.
“Medicare does pay medical bills, like they do in the other 49 states, and they cover from emergency room through long-term care. So it’s a choice that you have to make, as a family, as a person.”
The two also noted the auto insurance reforms prevent insurers from basing rates on home ownership, zip code, education, and credit score. Paquette called the reforms “massively exciting.”
