Understanding Michigan’s No-Fault Insurance Reform: What Downriver Drivers Need to Know
Understanding Michigan’s No-Fault Insurance Reform: What Downriver Drivers Need to Know
For Downriver residents involved in an auto accident, understanding Michigan’s no-fault insurance system is crucial to protecting your rights and securing the benefits you deserve. The reforms implemented in 2019 have changed the landscape of auto insurance in our state, particularly affecting how Personal Injury Protection (PIP) benefits are structured and delivered.
Key PIP Coverage Choices After 2019 Reform
Unlimited coverage (prior default)
$500,000 coverage
$250,000 coverage
$50,000 coverage (Medicaid only)
Opt-out (with qualifying health insurance)
How the New Medical Fee Schedule Impacts Local Care
45% of the Medicare rate from July 1, 2024
40% of the Medicare rate from July 1, 2025
Potential service reductions at Henry Ford Wyandotte Hospital & Beaumont Trenton
Limits on Attendant Care for Downriver Families
Family-provided care capped at 56 hours/week
Greater care needs may require petitioning for additional hours
Expanded Mini-Tort Recoveries for Vehicle Damage
Recovery limit raised from $1,000 to $3,000
Vital for Downriver commuters on Fort Street & Jefferson Avenue
Higher Thresholds for Pain & Suffering Claims
Only “serious impairment” injuries qualify post-reform
Modified comparative negligence still applies
Action Steps: What Downriver Residents Should Do Now
Review your PIP coverage level
Assess health insurance gaps
Note new deadlines for benefit claims
Consult a Downriver attorney for complex cases
FAQs
Q: What PIP limits can I choose under Michigan’s reform?
A: Choose unlimited, $500K, $250K, $50K (Medicaid), or opt out if you have qualifying health coverage.
Q: How does the new fee schedule affect my medical bills?
A: Starting July 1, 2024, providers are capped at 45% of Medicare rates and 40% starting July 1, 2025.
Q: What is Michigan’s mini-tort?
A: You can recover up to $3,000 for vehicle damage when another driver is at fault.
Q: Can I still sue for pain and suffering?
A: Yes—but only if your injuries meet the increased statutory thresholds post-reform.
If you’ve been injured in an auto accident or have questions about Michigan’s no-fault reforms, contact Downriver Injury & Auto Law today for a free consultation.
