Do I Need Higher Liability Limits Because of Auto No-Fault Reform?

CV-19 has taken the focus off of auto no-fault reform. Rest assured we are on top of it for you! According to the Department of Insurance and Financial Services (DIFS) CV-19 will not impact the implementation of no-fault reform as of 4/16/2020.

Reform to our no-fault system has not taken place since its implementation in the 1970s. We have recorded 6 videos that you can find on our YouTube channel Meiers Lombardini Lemanski Insurance. We are also blogging about all 6 of these videos too!

So… you’ve asked us “do I need higher liability limits because of the no-fault changes?”

Well…the answer is yes and here’s why we say that. It’s not to sell you another insurance policy. It’s because we want you to protect your assets, or your business if you have one. If you think you don’t have a lot of assets then you have the rest of your life to work so we want to protect your future assets as well.

This being said an umbrella policy gives you ADDITIONAL liability limits above the coverage you already have purchased. Think of it like this:

UmbrellaImage credit to Central Insurance.

We have always encouraged you to purchase an umbrella policy but it’s important now more than ever because of the changes to the no-fault system.

Before reform (pre July 2,2020) you had UNLIMITED medical coverage. If you are hurt in an auto accident prior to July 2, 2020 your medical was paid for. After July 2, 2020 ALL Michiganders have a choice of different levels of coverage on their auto policy. You can keep unlimited, choose a lower limit or opt out entirely.

How does this impact you?

Well…if you injure someone in an auto accident after July 2, 2020 and they have not chosen unlimited coverage then they can make a claim against you for their medical costs above their limit! For example, let’s say you injure someone in a car accident and they have selected $250,000 of medical coverage. If that person is catastrophically injured they can make a claim against you for the excess medical above that limit. $2 million in medical expenses would be an additional claim of $1,750,000!

How can you better protect yourself?

Purchase an umbrella policy!

What if you already have an umbrella policy?

You can increase your liability limits.

Do you still have questions, or you want to talk more about this? Contact us (517) 351-9117 or and let’s chat about your options! #teammllins #independentagents #autonofaultreform #miautonofaultreform #liability #umbrella



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