Paul Tafelski PC July 2019

Lower Costs, Higher Risks What You Need to Know About the New Auto-Reform Bill Better Call Paul l P Your Personal General Counsel n l 248-451-2200

July 2019

Though it’s not the main area of practice at our firm, we realize how important it is to stay on top of any news regarding your personal safety. At the end of May, Governor Gretchen Whitmer signed into law a new bill called the No-Fault reform plan. While this bill seems like a win for everybody involved, there are some caveats we want our clients to know about. By staying informed, you can save yourself a world of trouble in the event you get injured in a car accident. Car accidents are one of the top causes of injury and death in Michigan, so having proper coverage is more important than ever. At face value, when this bill goes into effect on July 2, 2020, it will lower the insurance rates for our state’s drivers. But when you look closer, it can have some serious consequences. While these changes won’t be felt immediately, you shouldn’t wait until the last minute to plan your best course of action. Here is a basic overview of what is set to take place, so you can prepare accordingly. With these lower rates, you will also have the option to get greatly decreased amounts of personal injury protection. When the law goes into effect, we will see a mandatory 10% rate decrease and a set fee schedule for medical rates, with a three- year phase-in period. Again, this is all very new and subject to some tweaking, but remember that cheaper isn’t always better when it comes to risking your livelihood on our roadways. If you’ve never been involved in a serious accident, you may not realize just how expensive your medical bills can be. These expenses can have profound and devastating effects on every part of your life, making it vital to spend those extra few dollars a month to have a comfortable insurance plan to fall back on if you sustain serious injuries in a car accident. Before this bill, Michigan had one of the more progressive insurance policies in

the country. There were many benefits in the event of injury due to an accident, regardless of whether or not it was your fault. There were programs in place to make up for lost wages, provide unlimited medical care, and even have people come and clean your home while you were busy getting your life back on track! Without these possibilities, you may be shocked by the outcome if you don’t have the proper amount of coverage. In the insurance world, 10 extra dollars a month could end up being the difference between thousands of dollars in coverage. Unlimited coverage will still be available, but it will not be required by law. The numbers break down like this: By choosing a $500,000 PIP, you will save about $240 a year. Choosing a $250,000 PIP coverage will reduce your yearly rates by about $420 a year. If you feel you don’t need it, then your $50,000 option will result in savings of about $540 per year. It’s important for you to sit down with your family and talk about how much you can spend on insurance. When choosing your PIP coverage, drivers should

check if their health insurance covers disability, which is a factor that must be considered when picking your level of coverage. Saving a little money every month isn’t going to do you a lot of good when the bills start piling up. Here at Paul Tafelski P.C., we care about what happens to our clients. For all your legal questions and concerns, from auto accidents to divorce proceedings, feel free to reach out to us at 248-451-2200 or visit our website at If we can’t help you, we’ll point you in the direction of someone who can. In other exciting news, we’re proud to announce that David Goukassian has joined the firm as an associate attorney. He practices in the areas of criminal defense, personal injury, family law, and more. David is fluent in Armenian and is passionate about being a great lawyer. We look forward to working with him.

-Paul J. Tafel ski • | 1

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