There are 2 big parts to the 7-1-2020 Auto Reform package. First is the PIP reform. The savings cited are not on your overall premium but only on the PIP (medical) portion of your premium. Secondly if you select anything other than unlimited (which we recommend) your medical limit is capped at the amount you select. Say you qualify to “Opt-Out”. You can save the entire PIP charge, but you now rely solely on whatever benefits, limits, networks and restrictions that Medicare parts A&B have in place. The same goes for any of the other limits. Any limit selected other than “unlimited” is all the coverage you’ll have in place. Any amounts over your chosen limit are now your responsibility.
When people ask why I suggest “unlimited coverage” benefit, I always have the same reply; how bad is your accident going to be?
The second part is MCCA reform. The per car charge is coming down from $220 per auto to $100 per auto.
What’s the risk? If you are at fault and the other party is injured and did not select “unlimited” you could be liable for their medical bills, rehab, assisted care and more. Depending on the severity it could be for life. If you are liable (at fault) you can be sued for claims in excess of the not at fault injured persons PIP limits.
How do you protect yourself from this type of claim? You need to discuss with your insurance professional both your appropriate PIP level as well as an Umbrella policy to protect you and your hard-earned assets from any major claim.
If you wish to have a discussion, please give us a call to schedule a time.
Call Us 616-406-0645