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December 6, 2019 60 min

Today we're going to talk with a local insurance agent about some of the turbulence you can encounter when trying to get homeowners insurance. Welcome back to the jump seat Christine Suchoski with Custom Insurance Agency.

Let's jump right in talk about that PIP coverage.

It's auto. Yeah.

Yeah. Let's talk about that first because that's pretty top of Mind right now for a lot of people.

Yeah, we're going through some changes here in the state of Michigan. This has been in and out of the courts for... oh, gosh, for years. What's happening here in the state of Michigan, the PIP, personal injury protection portion of your auto policy is what's in question here. They're looking to mandate your liability limits. What does that mean?

What they want to do is, you, the policyholder, have an auto-related accident, and they want to know who's going to pay first? Who pays primary in an auto-related accident?

Are you benefits coordinated? Does your medical pay first? Does your auto insurance pay first? To be honest with you, you really don't know until you call that 800 number on the back of your medical card for those of you who have medical insurance.

Then at that point, you have an option, if your medical does pay primary, you can leave them as primary. If they pay secondary, well then your auto becomes primary. Then there are those of us who just don't have medical insurance.

Auto insurance, at that point becomes the primary medical responsibility in an auto-related accident.

I can understand here and paint the picture, so we're talking about a scenario where a person has typical auto coverage and typical medical coverage, and they get into an auto accident and they're hurt-

Mm-hmm (affirmative).

... and so medical bills ensue and then it's a question of were you're insured two ways, both through your own policy into your personal which one's going to write the first check, is that really what we're talking about here?



See, personal injury protection basically covers your expenses, your medical care, if you will, recovery rehab, let's say there's some wage losses, it even covers funeral expenses too.

But what's happening here in the state of Michigan, our rates are so high, because in the state of Michigan, if you were to get hurt, we have unlimited medical, for the rest of our life.

And the auto policy.

And the auto policy.

Mm-hmm (affirmative).

Yeah. But now what's going to happen here come next year when they're rolling this out to you guys, the policyholders an opportunity to put a cap on that to say, "Hey, I don't want unlimited medical anymore. I'm going to put a half a million cap on that and take a discount."

They're offering you a discount by putting a cap on your medical protection. Health insurance will cover your medical expenses, but then the auto kicks in for all your ancillaries, your rehab, your recovery, do we have to do something to the house? Do we have to remodel?

Right now with unlimited medical, we don't have to worry about that. But that's why our rates are so high. If you were involved in an auto-related accident right now and you had health insurance as primary, they have a schedule fee, if you will, "This is how much we can charge you for the X-ray, hundred dollars."

But if you have auto as primary, you don't have a medical insurance and you have that same accident, they can charge you whatever they really want to charge you. 200, 300, 400, there is no fee schedule when the auto is paying first.

Christine Suchoski
Custom Insurance Agency

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