By Scott McClallen
(The Center Square) – Michigan drivers will be able to opt out of unlimited personal injury protection (PIP) insurance and cut costs on their car insurance rate beginning Thursday, when an insurance reform measure goes into effect.
The state enacted a no-fault insurance law in 1973 that required all state policyholders to buy unlimited PIP coverage.
Those who keep unlimited PIP coverage would receive a 10 percent rollback of PIP coverage costs on average.
Stephan Sinas, legal counsel for The Coalition Protecting Auto No-Fault, previously told The Center Square that the MCCA fee reduction might give short-term relief to consumer’s pocketbooks but at the cost of less medical care for injured motorists who choose lower coverage options.
The nonpartisan House Fiscal Agency estimated the law could increase the state’s Medicare costs by $65.9 million over a 10-year-period from uninsured or under-insured motorists declaring bankruptcy after crashes that exceed that person’s insurance coverage.
