GENERIC: Car, driver

Auto insurance in Michigan has been the most expensive in the nation, but a new law going into effect this week hopes to change that.

For decades, Michigan has required drivers to pay for the highest level of personal injury protection (PIP) coverage in the event of a crash. While that is still an option, motorists can now choose to lower the rate to something more comfortable for them.

“Obviously a lot of our customers have questions with the law change. They’ve seen it in the media,” said State Farm Agent David Russell.

Russell said he’s been fielding a lot of calls about Michigan’s Auto Reform Law that takes effect on Thursday, July 2.

Motorists will have the choice of how much personal injury protection they want to carry on their policy.

Russell said motorists should find out how much their health insurance will cover them in the event of an auto accident.

“Will their policy provide benefits during their treatment and recovery?” Russell said.

Russell said the answer to that question should determine how much personal injury protection coverage is chosen.

Russell said motorists should consider the amount of bodily injury level that they carry on their policy. He said its protection if someone sues you for their injuries.

“If you’re at fault in an auto accident and that other party is seriously injured, and if they chose a medical level that doesn’t cover all their injuries, they may be in a position to be able to sue you,” Russell said.

State Farm says it is not making a recommendations on any of the new options. 

“Numbers are different for every policyholder but if you go from unlimited to $500,000, from some of the quotes I’ve run, the price reduction maybe $30 to $40 every six months,” Russell said.

Since there are a lot of different choices out there, Russell urges motorists to reach out to their insurance agent to better understand the options and find the policy that works best for them.

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