An online survey has found that many Michigan drivers intend to keep buying no-fault medical benefits with their auto insurance, even after a new law gives some drivers a first-ever option this summer to opt out and save money.
The statewide survey of 1,005 drivers, conducted last September with results announced Wednesday, found that just over half — 51 percent — of those who had auto insurance planned to continue buying some no-fault benefits once the new, narrower options become available in July.
Currently, all Michigan drivers are required to buy potentially unlimited, lifetime medical benefits.
Of those insured drivers surveyed, 24 percent said they intend to completely opt out of no-fault benefits and instead rely on their own health insurance after an auto accident, such as private health insurance, Medicare or Medicaid. The other respondents (25 percent) said they weren’t yet sure what they will do.
The survey quoted an unnamed respondent who plans to continue buying no-fault benefits.
“I have seen how (no-fault) coverage has been invaluable to persons with devastating injuries in accidents not their fault,” the respondent said.
The 15-minute online survey, conducted by market research firm Escalant, offers one of the first indications of how consumers will respond to the new auto insurance options. The results were released Wednesday by the Michigan Health & Hospital Association.
Among uninsured drivers, the survey found that 43 percent intend to completely opt out of no-fault benefits and 28 percent expect to buy at least some benefits. One unnamed respondent said, “I cant afford insurance to begin with so I would choose whatever option would be the cheapest.”
No-fault benefits cover things that most private health insurance plans don’t, such as extensive in-home attendant care, lost wages replacement, home and vehicle modifications and long-term custodial care in specialized rehabilitation centers.
Starting July 2, Michigan drivers who are on Medicare or have commercial health insurance that covers car crashes (and with a per-person deductible no higher than $6,000) can choose to completely opt out of no-fault medical benefits.
Other drivers will be required to purchase some no-fault medical coverage, known as personal injury protection or PIP, with their auto insurance. They can pick from several options:
$250,000 in no-fault medical benefits
$500,000 in no-fault medical benefits
Unlimited no-fault medical benefits
$50,000 in no-fault medical benefits — but only for those on Medicaid or with health insurance that covers auto
Insurance experts say that most Michigan drivers will have to wait until late spring or even summer to find out how much money they might save under the new law. Their first indication will likely be in their insurance renewal option paperwork, which typically arrives in the mail 30 to 60 days before an existing policy expires.
— Contact JC Reindl at 313-222-6631 or [email protected]. On Twitter @jcreindl.
