Michigan car insurance could go up if you miss key forms

SOUTHFIELD, Mich. (FOX 2) - In 2020, Michigan's auto insurance changed dramatically to allow drivers to opt-out of Personal Injury Protection (PIP). If you did that, you should know that another big change is coming in 2021.

The renewal for the insurance you set up last year may not be exactly as easy as you might think.

Michigan car insurance change requires recertification or you could get huge bill

If you took advantage of the change to Michigan's car insurance changes in 2020, you have to recertify or you could get hit with a massive increase in your premiums.

And if you thought the 2020 insurance changes were confusing, 2021 is bringing even more questions.

"It's kind of catching people off guard because it feels like just yesterday we signed all those forms," said State Farm branch owner David Arce. "Depending on what the consumer did and what our customers did, there are some requirements after the fact "

If you opted out of the medical portion of no-fault insurance - which would be option 4, 5, or 6 - you have some paperwork to sign right now to re-certify your coverage.

"If the paperwork for re-certification is missed, then they are going to get surprises at renewal with bigger increases in their premium," Arce said.

The paperwork, which must be signed every six months, could make your rates go up significantly. He said he had a customer come in last week who had not signed the paperwork. Her insurance went up from about $400 every six months to $950 every six months.

She got her re-certification paperwork in order and her premiums went back down.

"If you renewed in August the forms are due for February and then this coming up August customers will be asked to sign again," Arce said.

As a reminder, to opt-out of the medical part of no-fault, you have to be able to prove you're on Medicare, Medicaid, or have qualifying health insurance. You also should have been notified by your insurance agency.