DEFINED:

Coverage against being sued when a person covered by your auto policy becomes legally responsible for damages related to the bodily injury of others in an auto accident.

CHANGES: 

Starting July 2, 2020

1. State Minimum Limits

Was: $20,000 per person, $40,000 per accident

Now: $50,000 per person, $100,000 per accident

Our Opinion? This is a step in the right direction. None of our customers will see a change here because we as an agency never wrote State minimum limits, but our customers will see the indirect benefit by other drivers being guaranteed to have higher limits

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2. State "Recommended" Limits

Was: nothing

Now: $250,000 per person, $500,000 per accident

Our Opinion? A step in the right direction! The State now asks that all drivers have this limit or better, but allows for driver's to have lower by signing off on a form that is submitted to the driver's company. Why is this not a slam dunk? We would prefer if this were the State minimum but are happy with the improvement in the security for Michigan drivers

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3. Sign-Offs

As mentioned in #2, if you want limits less than $250,000 per person, $500,000 per accident, you will have to sign a form and turn it in to the company. Forget to do so and you default to $250,000/$500,000. 

If you forgot to turn it in, you can change your limits at a later date, but will have to sign off on the form and your rate will only change from the date the company receives it.

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4. Comparative Negligence

Currently, a party has to be found to be 51% at fault or more in order for there to be any liability.

In the new system, even if you are 1% at fault, your policy can be brought in to pay for 1% of the other party's injuries. 

That may not seem like a lot, but if you are found to be 30% at fault and the other party has injuries of $500,000 (which can and does happen), you would be on the hook for $$150,000