PIP Coverage for Uninsured Claimants Injured Between 2019 and 2020 Clarified
Uninsured vehicle occupants, pedestrians, and bicyclists who were injured in auto accidents between June 11, 2019 and July 2, 2020 will now receive unlimited Personal Injury Protection (PIP) medical coverage. The two dates mark the initial enactment and the actual effective date for Michigan’s new auto insurance law. PIP benefits for injuries resulting from motor vehicle accidents are capped at a maximum of $250,000 as of July 2, 2020, and the wording of the law created some confusion over PIP benefits during the one-year transition period.
The ruling follows a settlement agreement announced by the Michigan Department of Insurance and Financial Services (DIFS) on August 16, 2021. DIFS had previously ordered the Michigan Assigned Claims Plan (MACP), which is administered by the Michigan Automobile Insurance Placement Facility (MAIPF), to provide unlimited PIP medical coverage for uninsured non-drivers who were injured prior to July 2, 2020. Litigation ensued but is now resolved as of the settlement agreement.
As of July 2, 2020, Michigan drivers can choose from up to six different PIP coverage options offered on a graduated pricing scale starting with $0 coverage. The cost of PIP coverage is a significant portion of the premium expense for an auto insurance policy. Prior to the new law Michigan drivers were required to buy unlimited lifetime PIP coverage.
Click on the link to read the DIFS August 16 announcement.
About Alexander & Angelas, P.C.
Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.
A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.
Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees, and strives to resolve matters within one year from initial case assignment.
Visit Alexander & Angelas online at https://www.alexanderandangelas.com/ for more information. Partner Peter A. Angelas is available to discuss a confidential matter.