Will this impact my insurance policy?

The new law increases the minimum limits for coverages related to the liability portion of your auto insurance policy. This includes uninsured and underinsured motor vehicle coverages. The new minimum liability limits will increase to 25/50/15* beginning July 1, 2020. All existing policies with lower limits will renew at the new minimum limits on or after July 1, 2020 as mandated by this new state law. If your coverages are increased to comply with the new minimum requirements, there could be an impact on your premium.

*What do the three numbers mean?

The numbers 25/50/15 represent the monetary limits of your liability coverage shown on your declarations page:

• The first number, 25 or $25,000, is the maximum coverage for bodily injury liability for one person injured in one accident.
• The second number, 50 or $50,000 is the maximum coverage for bodily injury liability for all persons injured in one accident.
• The third number, 15 or $15,000 is the maximum coverage for property damage liability in one accident.

Why is this happening now?

Implementing changes required by a new law can take several months. While the law is going into effect now, the process to implement these changes was set in motion in 2019 after the law was passed.

What is the reason for this change?

The current limits have not been adjusted for more than 40 years. The change provides more protection for Arizona drivers since services associated with these coverages, like medical and repair costs, have risen significantly in that time.

How will this work? Do I need to do anything?

No action is required. All existing policies with lower limits will renew at the new minimum limits on or after July 1, 2020, as mandated . However, it may be a good time to reach out to your State Farm agent to review all of your coverages and review potential discounts.

When will this happen?

The new law goes into effect July 1, 2020. Customers who are impacted will see the change in their next policy renewal after that time.

How does this impact the credit we’re receiving from the Good Neighbor Relief Program?

You will still receive your credit as part of the Good Neighbor Relief Program. If your policy was renewed with the new minimum liability limits, your premium may be adjusted to reflect that as well. Both should be clearly marked on your State Farm declarations page as part of your policy renewal.

Signed into law by Governor Gretchen Whitmer, the PIP reform options take effect July 1, 2020.

Mandatory unlimited PIP coverage has been in place since 1973. PIP’s unlimited, lifetime medical benefits are paid regardless of fault and have led to increased fraud. As a result, Michigan auto insurance premiums are some of the highest in the nation.

Among the reforms to Michigan’s auto insurance system are:

• more coverage choices,

• creation of a fraud bureau,

• a fee schedule for the amounts health care providers can charge for auto insurance-related injuries, and,

• mandatory rate relief for consumers and more.

Be Prepared.

While much of the reform won’t take effect until July 2020, it’s not too soon to talk to your State Farm agent to review your current coverages.

State Farm continues to work with legislators, industry partners and other allies to promote reform solutions that benefit customers.