Author: Shield Insurance Agency

Does A Homeowners Policy Cover Appliances – Shield Insurance Agency Blog

Homeowners Insurance and Major Appliances

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Homeowners Insurance |

Is a home appliance covered by a standard homeowners insurance policy

We often overlook our home appliances until there’s an issue — the refrigerator quits, a tree crashes into our A/C unit or an oven is damaged beyond repair in a kitchen fire.

But maybe it’s time we start to take notice. After all, home appliances are some of the hardest working members of our homes, and the cost to replace a home appliance can be significant. An A/C unit, for example, can cost anywhere from $2,000 to $10,000 to replace.

Before an issue arises, take the time to speak with one of our insurance agents and find out when your home appliances are covered by the standard homeowner’s insurance policy. Prepare now so you can more quickly replace your home appliance when you need it most.

When are home appliances covered by a standard Homeowners Insurance policy?

When it applies to your Homeowners Insurance Policy.

All of the home appliances that help keep your home running are typically covered by a standard homeowners’ insurance policy when a peril covered by that policy is the culprit. So, if your oven is destroyed during a kitchen fire or if someone steals your toaster oven during a burglary, those losses would be covered by home insurance.

Appliances that are installed at your home, like your HVAC system, are also typically covered by a standard homeowners’ insurance policy.

Not covered when the issue is caused by age or normal wear and tear.

Similar to other types of insurance coverage, a home appliance would not be covered by a standard homeowners insurance policy if the issue is caused by age or normal wear and tear. Also remember that if you’re renting your home, your landlord is typically responsible for maintaining or replacing any home appliances that came with the property.

If you’re unsure if your home appliance would be covered by your home insurance policy, call or text our office at 616-896-4600 and one of our agents will help you review your home insurance policy and answer any questions you have.

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16 Car Insurance Discounts – Shield Insurance Agency Blog

16 Car Insurance Discounts

Posted on by Shield Insurance Agency

16 car insurance discounts to ask your agent about

You don’t have to skimp on quality to get the kind of car insurance that fits your unique needs and your budget. In fact, car insurance discounts can help you get the best of both.

Shield Agency is a knowledgeable resource that can help you become aware of and take advantage of any car insurance discounts that are available to you. The next time you speak with your insurance agent, use this list to get the conversation started. Consider asking about these 16 car insurance discounts to see if you qualify.

Common car insurance discounts

These discounts are available through most car insurance companies

  1. Safe driver discount – Haven’t been at fault in an accident or received a ticket in a long time? Having a good driving record can save you money on your car insurance.
  2. Good student discount – If you have a student on your policy with no chargeable accidents, excessive speed violations or major violations, you could qualify for this discount.
  3. Multiple policy discount – When you purchase multiple policies with the same insurer (home, auto, life, etc.), you may be able to “bundle” your policies and receive this discount.
  4. Multi-vehicle discount – If you have multiple vehicles you’re adding to your auto policy, you could receive this discount.
  5. Paid in full discount – For policyholders who pay in full before their due date, you could receive this discount.
  6. Electronic payment discount – Paying your bill online or setting up automatic payments can help reduce your car insurance costs with this discount.
  7. Student away discount – You can receive this discount while your college student is away at school and not using a vehicle.
  8. Homeowner discount – Own your home, townhouse or condominium? You’ll qualify and be able to save on your auto insurance with this discount.
  9. Legacy loyalty discount – Your child will receive this discount when they move off your policy and onto their own policy with the same insurance carrier.
  10. Advance quote discount – A new customer whose auto policy starts at least one day after receiving their quote will receive a discount.

Less common car insurance discounts

Some car insurance carriers offer unique discounts to help you save on your auto insurance.

  1. Education discount – You’ll receive a discount if you or your spouse has completed post high school education. This discount is based on the highest level of education achieved.
  2. New beginning discount – This discount is available for customers who are recently divorced or separated.
  3. Full coverage discount – For those who purchase Collision Coverage on all vehicles on their policy, you can receive this discount.
  4. Occupation discount – You’ll receive a discount based on the occupation level of you or your spouse.
  5. Violation free discount – You’ll receive this discount if you’ve had no chargeable violations for three or more years.
  6. Young operator renewal – New drivers will receive a discount based on the length of the current customer’s policy with Grange.

Contact our office and let us find the best policy for your best coverage!

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Ladder Safety Tips Everyone Should Know – Shield Insurance Agency Blog

Ladder safety tips everyone should know

Posted on by Shield Insurance Agency

Ladder Safety

Ladder Safety. Remember in old cartoons when the main character is caught wobbling at the top of an extension ladder? A funny skit ensues as the ladder inevitably begins to fall and a friend scurries around under an expanding shadow trying to catch them.

Scaling a ladder in real life, we know, is a lot more serious. According to OSHA, portable ladders (step, straight, combination, and extension ladders) are one of the leading causes of falls and injuries to workers on the job. Knowing how to use a ladder properly at home or at work decreases your chances of risk and injury.

From cleaning your gutters to fixing a roof, you’ll most likely need a ladder to get the job done. Keep these ladder safety tips in mind the next time you climb to ensure the job is completed in a safe and timely manner.

Before use

Preparation is key to ladder safety. Keep these tips in mind before you climb:

  • Inspect the ladder for cracked or broken parts such as rungs, steps, side rails and locking components.
  • Be sure all locks on an extension ladder are properly engaged.
  • Do not place ladders on boxes, barrels, tables or other unstable objects to gain additional height.
  • Make sure all tools and materials are securely fastened to the ladder to prevent falling.
  • Do not use a self-supporting ladder, like a step ladder, as a single ladder or in the partially open position.
  • An extension ladder should extend three feet above the point of support.
  • To set your ladder at the right angle, place its base a quarter of the working length of the ladder from the wall or other vertical surface.
  • If using a ladder outside, do not use in windy or inclement weather.
  • Check in with yourself: Avoid using a ladder if you feel dizzy, tired or are impaired.

During use

Ladder safety doesn’t stop on the ground. Keep these tips in mind while your ladder is in use:

  • Do not exceed the maximum load rating of the ladder. Read and follow manufacturer’s labels and warnings for use and weight rating.
  • When climbing, maintain three points of contact through a combination of hands and feet at all times.
  • Don’t stand on the top rung of the ladder unless it’s designed for such activity.
  • Never have someone climb up to bring you something. Only one person should be on a ladder at a time.
  • Don’t move the ladder while it’s in use.
  • Don’t lean or overreach. Reposition the ladder instead.
  • Face the ladder and always grip the rungs, not the side rails.

This article is for informational and suggestion purposes only. To learn more about your insurance needs, contact Shield Insurance Agency.

References:
– Grange Risk Management
– Occupational Safety and Health Administration (OSHA)
– National Safety Council (NSC)

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How to Handle 10 Common Home Emergencies - Shield Insurance Agency Blog

How to Handle 10 Common Home Emergencies

Posted on by Shield Insurance Agency

You love your home. Make sure you know how to keep it — and you and your loved ones — safe and sound. Here are 10 common home emergencies and how to handle them.

1. Kitchen fire.

The most common culprit of a kitchen fire is an inattentive cook. It’s never a good idea to leave your stovetop or oven unattended when food is cooking. Prevent kitchen fires by cooking during times when you won’t need to step away from the kitchen.

If a kitchen fire happens, take these steps:

  • For a small grease fire, try smothering it with baking soda or sliding a metal lid over the pan to suffocate the fire. Turn off the stove. Never use water to put out a grease fire; it can be dangerous and make the situation worse.
  • For an oven fire, keep the oven door closed and turn off the oven.
  • If the fire continues, help everyone to evacuate the house, close the door behind you and call 911 from a safe distance from your home.

Also, remember to regularly check your smoke detectors. Put a reminder on your calendar to test all the smoke detectors in your home monthly, and promptly replace batteries when needed. Consider replacing all your smoke detectors every 10 years.

2. Water leak.

Whether it’s a slow drip or a steady stream, the best thing you can do is know where your home’s main water valve is located — typically it’s in the basement or near the front of the house — which controls the flow of water into your home and learn how to turn off your water in an emergency to prevent water damage to your home. Then you will need to call a plumber for assistance.

If your ceiling is leaking, gather buckets or plastic sheets under the leak to help prevent water damage. Then try to track down the source of the leak. If it’s likely a roofing issue, it’s best to call a professional right away to assess the situation and help with repairs.

Finally, take steps to insulate your pipes before the weather turns cold to prevent pipes from freezing and bursting.

3. Water overflow.

Anything that holds a lot of water in your house can potentially overflow into the surrounding area. Here’s how to handle a water overflow

  • When a toilet overflows, find the valve behind the toilet near the wall and turn it off to stop the flow of water. Then, quickly mop up any standing water. Finally, try to determine the cause. Look for issues with the fill tube and float as well as for clogs or other issues that could be keeping the toilet from draining. If you’re still stumped, call your plumber for assistance.
  • When your bathtub or sink overflows, first stop the flow of water — whether it’s as simple as turning off the faucet or by shutting off the main water valve to your home if the faucet is broken. Then, quickly mop up standing water to prevent further damage. If the faucet is broken, make necessary repairs before using that sink or bathtub again.

4. Flooded basement.

Whatever the cause, if your basement is flooded with water, the most important thing is that you NEVER enter a flooded basement. For your own health and safety call your utility companies first, and stay away until they have turned off the electricity and gas. Then, it’s best to hire a professional to help you clean up, mitigate the damage to your home and help prevent you and your family from becoming sick. You will need to throw out anything the flood water reached unless it can be thoroughly cleaned and disinfected.

5. Power outage.


When the power goes out, check to see if nearby homes and streetlights still have power. If their lights are still on, check your breakers. If the neighborhood is dark too, then call your power company, or visit their website, to report the power outage and ask for an estimated repair time

Stay safe by following these steps:

  • Use flashlights. Don’t light candles. Keep your flashlights in an easy-to-find location, test them monthly, and keep spare batteries in a known and accessible location. If you don’t have a flashlight, your cell phone can help provide some light to help guide you safely through your home.
  • Keep your refrigerator door closed. Food can spoil in a refrigerator after the power has been out for more than 4 hours.
  • Turn off or unplug electronics. If the lights were on or you were using any electrical equipment, like a computer, when the power went out, switch your lights off and unplug your electronics.

If you anticipate having a power outage that lasts for days, such as after a hurricane, consider investing in a generator that can help provide electricity to essential things in your home, like a refrigerator or freezer. Be sure to follow all safety instructions while using it.

6. Carbon monoxide.

Carbon monoxide is a clear, odorless gas that can cause severe illness or even death. The symptoms are often like the flu without a fever. If you think you have carbon monoxide poisoning, call 911.

The best way to prevent a carbon monoxide emergency is to:

  • Use carbon monoxide detectors and test them once a month to make sure they’re in good working order. Check the manufacturer’s instructions to learn how often to replace your carbon monoxide detectors.
  • Have gas appliances inspected at least once a year.
  • Properly vent all gas furnaces, water heaters and fireplaces.
  • Follow all safety instructions for gas-powered appliances, such as space heaters and generators.

7. Gas leak.

When a natural gas line leaks, you may smell gas (it smells a lot like rotten eggs). While natural gas lines don’t leak often, you should always take it seriously if it does. A gas leak inside your home can make you sick or even lead to an explosion.

If you notice the smell of natural gas inside your home:

  • Go outside IMMEDIATELY and call the utility company and 911.
  • Don’t try to find the leak.
  • Don’t turn on or off any electrical appliances.
  • Don’t smoke or have any open flames nearby.

8. Broken glass.

Whether it’s a cracked window or a smashed dinner plate, broken glass can be a difficult mess to clean up. Whenever possible, take actions to prevent it, such as closing shutters, blinds and curtains ahead of severe weather or handling glass objects with care. But when it happens, here’s how to clean up broken glass safely:

  • Don’t handle glass with your bare hands. Put on thick or rubber gloves if you have them or use a tool like a piece of cardboard or stiff paper to help you scoop up the large pieces of glass.
  • Next, use large tape, like duct tape, to help you pick up smaller pieces of glass. Because broken glass can travel farther than you might expect, be sure to use your large tape on the surrounding area, too.
  • Finally, mop or wipe up the entire area with wet wipes or doubled-up paper towels. If the glass is in your carpet, thoroughly vacuum the area using a hose attachment and move it in different angles and directions to get as much glass out of the carpet fibers as possible.
  • If the window is broken, you can seal it temporarily by taking a trash bag and cutting it with scissors to fit the window. Tape several layers of this plastic bag to the window’s frame with duct tape. Then immediately schedule a window repair or replacement.

9. HVAC goes out.

When your air conditioning or heating decides to quit, your first call should be to a technician who can inspect it, and if needed, repair or replace it as soon as possible.

If your A/C goes out during warm weather, take steps to keep your body temperature stable to prevent heat stroke and stay comfortable. Here are some things you can do:

  • Drink ice water often and avoid drinking alcohol. Alcohol can raise your body temperature.
  • Eat foods that are easy to digest, like fruits and vegetables.
  • Take a washcloth and rinse it under cold water, then put it on your neck, wrists or behind your knees to help keep your body cool.
  • Consider living in the lower level of your home since heat rises. For example, it may be more comfortable to sleep downstairs instead of an upstairs bedroom.

If your furnace stops working during cold weather, stay warm and safe with these tips:

  • Add layers to your clothing.
  • Don’t use your oven for heating.
  • Find a small area inside your home that you can heat with a fireplace or electric space heater. However, someone should stay awake while either of these are used to make sure there aren’t any issues. Be sure that your fireplace has proper ventilation to prevent carbon monoxide poisoning.
  • Hang curtains, quilts or bedspreads over doors and windows.

10. Ant or rodent infestation.

If you have unwelcome house guests that have more than two legs, it’s time to assess the situation so you can send them packing.

  • After you’ve spotted a mouse, walk the perimeter of your home — both on the inside and outside — and look for any signs of mouse activity (for example, mouse droppings, chewing or nests) and look for any small hole or crevice where the mouse could be entering your home. Cover any entry points with sealant or wire mesh. Then, set a series of mouse traps. If you continue to have issues, call a professional right away.
  • When you’ve found a trail of ants, remove them and thoroughly clean anywhere you think they’ve been with a vinegar spray to help remove their ant trail scents. Look for tiny gaps or cracks near windows, doors and floorboards, where the ants may be entering your home. Set up ant traps and consider calling a professional who can determine if there’s an ant nest near your home. If you have large black carpenter ants, call a professional immediately since these ants can cause more damage to your home.

References:
– WebMD
– Familyhandyman.com

Contact your Shield Insurance Agency for complete details on your home insurance coverage and discounts.

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Calculate How Much Life Insurance You Need – Shield Insurance Agency Blog

Calculate How Much Life Insurance You Need

Posted on by Shield Insurance Agency

Calculate how much life insurance you need

Life insurance is an important part of planning for the future. In your absence, life insurance can help protect your family’s finances, allow your small business to live on, and give you something to leave behind for your loved ones or a favorite charity.

Many people understand the importance of life insurance.

According to LIMRA, 80% of consumers believe that most people need life insurance and as many as 132 million Americans rely on life insurance to protect their financial security. But when it comes to actually purchasing a policy, the confusion sinks in and one big question often comes to mind: how much life insurance coverage do I need?

A life insurance policy isn’t “one-size-fits-all.”

Everyone has a unique financial situation, so coverage needs are just as unique. To answer this question, you’ll need to get your own personal estimate. Although meeting with your life insurance agent will give you the most accurate results, there are a few different methods you can use to get started.

One way to determine the costs you’ll leave behind is through the “DIME” method. DIME stands for:

D – Outstanding Debts
I – Income Replacement
M – Mortality
E – Education

To get an estimate of how much coverage you will need, take some time to list out all of your expenses that fall under these four categories.

Debt

Outstanding debt can be anything from outstanding student loans, to money you owe on a credit card. You also want to be sure your family can keep their home and stay there for years to come, so be sure to factor in your mortgage into your life insurance estimate. Regardless of how the debt was accumulated, you don’t want these expenses falling on the shoulders of your loved ones.

Income

How will your absence affect your family’s finances? Income replacement calculates just that—the amount of coverage your loved ones would need to continue living a similar lifestyle. Consider day-to-day living costs, as well as other types of spending, like childcare. And keep in mind that inflation will likely cause costs to increase. Don’t forget to factor in income that comes from any investments, in addition to the income that comes from your job.

Mortality

The mortality portion of “DIME” covers all final expenses, including funeral costs and other expenditures associated with end-of-life. When estimating final expenses, you may want to leave a little wiggle room for costs that you may not anticipate or be able to determine an exact number for, such as unpaid medical bills. There are also many costs and taxes that come along with settling your estate, so keep that in mind as well.

Education

If you have children who are in or are planning on going to college or even a spouse who may want to go back to school, consider the costs of their education when estimating your life insurance policy.

Once you add up all of these expenses, you may end up with a pretty big amount. However, there are a few items that you can subtract from this number, such as the amount of coverage on a group life insurance policy, funds from your retirement plan, or any other savings you’ve accumulated.

In addition to the DIME exercise, there are many online tools you can use to help you estimate your needs. For instance, Life Happens provides a nifty online calculator for estimating these costs. Enter all of your information in the form, and click on the question marks next to each form field for additional tips and information. Once you’ve filled in all of the fields, Life Happens will instantly estimate how much life insurance you need.

While the DIME method and Life Happens’ calculator are helpful tools, they cannot replace the knowledgeable insight and helpful advice of an independent insurance agent. An agent will speak with you about all aspects of your life, and work with you to find the right amount of coverage for your specific needs, contact Andy Simmons, our Life Insurance specialist, and get the coverage you need to protect your loved ones’ financial future.

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Covid-19 Consumer Alert – Shield Insurance Agency Blog

Covid-19 Consumer Alert

Posted on by Shield Insurance Agency

Information on the Coronavirus (COVID-19) is changing rapidly.  The information below consumer alert may be updated frequently.

As Michigan residents and businesses implement the measures outlined in Governor Whitmer’s Executive Orders aimed at mitigating the spread of the COVID-19 virus, questions may arise as to how insurance and financial services may be impacted. The information below will aid consumers and industry professionals in addressing these concerns.

Consumer Health Insurance Consumer Alert

Health Insurance

If you’ve recently lost your employer group health insurance due to the COVID-19 pandemic, you may be eligible for a special enrollment period. For additional information, visit DIFS’ Health Insurance Consumer Assistance Program (HICAP) website at www.michigan.gov/HICAP or call 877-999-6442.

Consumers enrolled in a fully insured health plan may be eligible for expanded COVID-19 coverage such as:

  • No cost for medically necessary diagnostic testing or treatment of COVID-19
  • Increased access to prescriptions
  • Prior authorization waivers
  • Expanded access to telehealth services

For more information on the benefits offered under your health plan, contact your insurer directly.

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National Bike To Work Month – Shield Insurance Agency Blog

National Bike To Work Month

Posted on by Shield Insurance Agency

National Bike To Work Month

May is National Bike To Work Month, promoted by the League of American Bicyclists and celebrated in communities from coast to coast. Established in 1956, National Bike Month is a chance to showcase the many benefits of bicycling — and encourage more folks to give biking a try.

Bike to Work Week 2020 will take place September 21-27, 2020. Bike to Work Day is Tuesday, September 22!

This National Bike To Work Month will necessarily be different. With a focus on well-being and connection, we’re highlighting how #BikesUnite and benefits physical and mental health. Whether you’re riding for fun, fitness or with family, or taking essential trips to work or shop, you are part of our movement for safer streets, connected communities, a healthier planet, and happier people.
 
As a national sponsor, the League provides resources to help you plan an event in your area, and each year the number and diversity of National Bike To Work Month celebrations continue to grow, accelerating the momentum around bicycling nationwide.

PROMOTIONAL MATERIALS FOR NATIONAL BIKE MONTH

In other years, National Bike Month is a success because of the countless, diverse local events organized by dedicated bicyclists in their communities, organizations, and workplaces. In 2020, we encourage you to promote biking and connect with others in the movement virtually. Step one: go for a solo bike ride, step two: share your experience on social media with #BikesUnite. 

JOIN US IN SHOWING HOW #BIKESUNITE US EVEN WHILE WE’RE APART »

For additional assistance or questions, please contact communications@bikeleague.org.

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Financial Resources For Covid-19 – Shield Insurance Agency Blog

Financial Resources For COVID-19

Posted on by Shield Insurance Agency

Financial Resources And Relief For Those Affected By COVID-19

Here’s where to go for financial resources if you’ve lost income due to the coronavirus pandemic.

By Casey Bond 04/24/2020 05:26 pm EDT | Updated April 27, 2020 | Huffpost.com

The coronavirus pandemic has challenged us all in ways never imagined. Not only does constant danger lurk of contracting COVID-19, but our daily routines have been turned upside down. It certainly doesn’t help that the virus has also placed enormous financial pressure on workers and businesses owners.

If your income has been affected by the crisis, it can be overwhelming to figure out which bills to pay and where to go for help. The good news is that many financial resources are available if you know where to look.

Benefits.gov is a great place to start, according to Leslie Tayne, a debt resolution lawyer and author of the book “Life & Debt: A Fresh Approach to Achieving Financial Wellness.” “The website helps navigate you to state and federal level benefits, including unemployment insurance, job placement and training, and more,” she said.

Click here for the rest of the story…

Check out the latest blogs posted to Shield Insurance Agency

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Teacher Appreciation Time – Shield Insurance Agency Blog

Teacher Appreciation Time

Posted on by Shield Insurance Agency

How to Still Make Teacher Appreciation Special, Virtually

This May, Teacher Appreciation Week is definitely going to look a little different. There won’t be any snack carts or staff luncheons, but with a little creativity, you can still make those hard-working teachers feel special. Welcome to virtual teacher appreciation:

Yard signs

We love the idea of posting signs in the yards of your staff. A lot of people are doing them for graduates, so why not teachers? Try something like, “A rock star teacher lives here!” or “I’m kind of a big deal at [SCHOOL NAME].” This is also a great way to support local businesses.

Online games

During Teacher Appreciation Week, we try to up the fun factor with trivia and games. You still can—you just have to take it online. Class Team Building is offering a weeklong game show for $45. It includes daily challenges like this: “Get anyone in this school to respond ‘LOL’ to one of your texts, but you can’t tell them beforehand that is the response you are looking for.”

Gift cards

There are plenty of gift cards you can send via email, including teacher favorites like Target and Starbucks (they currently have three fun teacher designs). This is also a good time to support local restaurants that are hurting and grab gift cards to your staff’s favorite places for takeout.  

Quarantine survival kits

How about baskets you drop off at doorsteps filled with all kinds of isolation goodies? We’re thinking a fabric mask, hand sanitizer (if you can get it), snacks, and drinks. Add an inspirational book, adult coloring book and markers, or a puzzle. You could even throw a roll of TP in there for a laugh!

Personalized items

If you’re looking for a more traditional with a little creativity, you can still make those hard-working teachers feel special, try personalized notepads like this one from Shutterly. You can include a handwritten thank-you note on the first page. We also like the idea of custom t-shirts and cloth screen cleaners. Consider setting up an online “store” and letting teachers choose their gifts.

Drive-thru or delivery meal

Many schools have set up drive-thrus to keep kids fed during school closures. A similar set-up would work to distribute a meal (or even just warm cookies!) for your teachers. Or you could deliver right to their doors. Either way, consider using a local establishment to cater your event and show teacher appreciation.

Virtual raffle

Looking to go big? If you want to go in for some bigger prizes (think: a $100 grocery store gift card or a personal laminator), you can use an app like Random Picker to draw your winners. Then do the announcement over a video-conferencing app like Zoom.

Teacher’s lounge makeover

If it’s in the budget (or you want to pool what you would have spent on teachers individually), you can plan something really great for when teachers return to school: an upgraded teacher’s lounge. You might consider new furniture or decor, invest in an espresso machine, or stock the pantry and shelves with snacks and personal items.

Involve students and parents

Heartfelt messages are probably the most important part of teacher appreciation. Google Docs and Padlet are nice ways to work collaboratively on a project with kids and parents, or just solicit ideas that you can then turn into your own presentation. 

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Michigan PIP Reform Explained – Shield Insurance Agency Blog

Michigan PIP Reform Explained

Posted on by Shield Insurance Agency

What is it? What should you expect?

Michigan’s Auto Insurance Reform, it’s finally coming around the corner on July 2, 2020. As many of you know, Michigan passed a bill that will hopefully save many drivers money each year on their auto insurance. This is partially due to the PIP Reform coverage on your auto insurance policies.  There are other parts to this, but this blog focuses on just the PIP portion of it.

WHAT DOES PIP STAND FOR?

Personal Injury Protection

WHAT DOES PIP COVER?

PIP is the coverage on your auto insurance policy that pays for the medical costs for auto-related injuries. This will cover not only the medical bills but for any long-term care, wage loss, and replacement services.

WHO DOES PIP COVER?

PIP will cover the named insured of the policy, also known as the policyholder and their resident relatives. Being a listed driver on the auto policy is NOT the same as being a named insured or a resident relative.

WHO IS A RESIDENT RELATIVE?

The definition of a resident relative can be difficult to define as not everyone’s family and living situations are the same. The generalized response would be anyone who is legally a relative of the named insured that permanently resides in the same home as the named insured. This would include the named insured’s children and spouse. Please have a conversation with your insurance agent if your family/living situation does not fall into the “traditional” circumstances.

WHAT ARE THE PIP OPTIONS?

Drivers will now have different options to choose from other than the unlimited PIP coverage. Currently, anyone with an auto policy in Michigan has an unlimited amount of PIP so there is no cap on how much an insurance company will pay out on a PIP claim. As of July 2, there will be options available, but it is important to know that not all options are available for everyone.

The options are:

  • Unlimited
  • $500,000
  • $250,000
  • $250,000 (with opt-out options for those listed on the policy with Qualified Health Coverage)
  • $50,000 (only for named insureds enrolled in medicaid AND any spouse and all resident relatives have either Qualified Health Coverage, medicaid enrolled or covered under another auto policy with PIP coverage)
  • $0 – Opt Out (only allowed if named insured has Medicare A and B AND if everyone else in the household has Qualified Health Coverage.)

The first 3 options have no stipulations so anyone could choose them. The last three options have certain requirements. It is important to discuss your health insurance circumstances with both your health insurance carrier and your auto insurance agent to know which options are available for you. Such as, does your health insurance fall under the “Qualified Health Coverage” under this new law?

WHAT IS QUALIFIED HEALTH COVERAGE?

As defined under the new law, Qualified Health Coverage is: health and accident coverage that does NOT exclude or limit coverage for injuries related to auto accidents/injuries and has an annual individual deductible of $6,000 or less per person. Medicare recipients with BOTH parts A & B would also qualify.

Medicaid and health care sharing ministries are examples of coverages that are NOT considered Qualified Health Coverage.

WHO DO YOU CONTACT ABOUT QUALIFIED HEALTH COVERAGE?

Call your health insurance company using the number on the back of your ID card. If your current health insurance is through your employer, you may be able to also contact your HR department. You may have to provide proof to your auto insurance company that you have the right kind of health insurance.

WHO DO YOU CONTACT ABOUT YOUR PIP COVERAGE CHOICE?

Call your auto insurance agent to discuss what options are available for you.

WHEN SHOULD YOU MAKE YOUR CHOICE / TAKE ACTION?

The beginning of June will be an ideal time to reach out to both your health insurance company to verify your coverage and your auto insurance agent. By this time, all auto insurance companies will have the rates available for the different PIP options. It is ideal to contact your health insurance carrier and get that answer, and then your auto insurance agent.

HOW WILL MY AUTO INSURANCE COMPANY OFFER THESE CHANGES?

Two options that most auto insurance companies are offering if you wish to change your PIP coverage to anything other than unlimited are: 1)You will be able to just make an endorsement (change) to your policy the same as if you were to swap a vehicle on your policy. 2) Some companies are requiring that your policy be rewritten so you would have a new policy vs just making the changes on the current one.

WHAT IS SHIELD INSURANCE AGENCY’S PLAN OF ACTION?

Shield has a plan in place starting in May to try and make this change go as smoothly as possible. We will be emailing all our clients we have email addresses for a quick 2 question survey for how they would like to address their auto policy regarding the new law. There are options to select if you already know your decision or you can select to have someone call or email you to discuss. For those who do not have an email address on file or who don’t respond to the emailed survey, we will be reaching out to you by phone prior to July 2.

To learn more, please feel free to email us at contactus@shieldagency.com or call or text us at 616-896-4600.

You can also visit https://www.michigan.gov/autoinsurance for more information.

Submitted by Agent Melissa Hunt

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