Changes in Michigan’s Mini-Tort Law Take Effect

We wish to make our Michigan clients aware that due to the recent passing of House Bill 5362, the Michigan Mini-Tort limit has now increased from $500 to $1,000.

For those unfamiliar, the mini-tort law (also known as limited property damage liability), was developed in response to Michigan’s no fault insurance laws.  No fault laws limit the instances in which an individual can be sued for being at fault in an accident.  The mini-tort exception allows individuals to sue the party who was 50% or more at fault in an accident to recuperate those physical damage losses not covered by the injured party’s insurance.

The recent increase from $500 to $1,000 reflects the growing trend among consumers to take on higher insurance deductibles.  While it is not mandatory that insurance carriers offer mini-tort coverages to their clients, most do as standard practice.  However, not all have increased their policy limit from $500 to $1,000 in time to meet the October 1, 2012 enactment of House Bill 5362.  This means in the event of an accident, consumers may (depending upon their insurance company’s position) be liable for an addition $500 in the event they are more than 50% at fault in an accident.

We have been discussing this recent change with the insurance companies we represent, and have received a number of different responses.  Some companies plan to automatically honor the increased limit for the remainder of the policy term at no additional premium and without issuing an endorsement amending the policy verbiage.  Others will be offering the increased limit, priced accordingly, at policy renewal once the endorsement has been filed with and accepted by the State.  And a number will be reviewing this development in the New Year.

If you have questions regarding this recent legislative change or wish to discuss your policy’s mini-tort limit, please call us at (800) 596-TRUCK (8782).  At the Navigator Truck Insurance Agency we work hard to be accessible, helpful and result oriented.

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