Many changes came under the no-fault reform passed last year. In earlier posts we discussed the new limits for personal injury and bodily injury, coordinated coverage, and the managed care option. Two additional considerations for current policyholders are the option to convert to a new policy under the revised no-fault act, and changes that affect motorcyclists.
On policy conversion, understand that all policies put in place prior to July 2020 exist, in large part, under the old no-fault system. Previously, policies required only $20,000 in bodily injury (BI) coverage, which pays for pain and suffering you cause when you are at fault, but all policies required unlimited Personal Injury Protection (PIP), meaning that regardless of fault someone would generally be covered for their medical bills after a motor vehicle accident. Now you can elect less than unlimited PIP, the default BI coverage is $250,000, and even with a special waiver you cannot purchase less than $50,000 in BI. Although you can elect less than full benefits, we strongly recommend keeping unlimited PIP, otherwise there are numerous ways you could end up liable for some or all of your medical bills after an accident, even one that is not your fault.
So should you reform your policy? Probably yes, or at the very least you should look into it. For one, there is currently a guaranteed rate reduction on the PIP portion, so you may be able to keep unlimited coverage and still see your premium go down. Second, to the extent others do not carry unlimited PIP, you could now be responsible for some of their PIP benefits, and without a high enough bodily injury limit you could be personally liable for their economic and non-economic damages. A mere $20,000 limit probably will not cut it.
One final note. Even if you do not reform your policy, absolutely review your uninsured and underinsured motorist limits. This optional coverage is essential: if an uninsured or underinsured driver injures you, it lets you collect for your pain and suffering even when the at-fault driver has little or no coverage of their own.
In summary, no matter what coverage you carry today, it is worth taking a look to see whether reforming or altering your policy makes sense, because coverages, liabilities, and premiums have all changed substantially.