DOWAGIAC — A date written with a black dry erase marker read Dec., 1, 1973, and hovered in the middle of a board as Jeff Neumann faced the Dowagiac Rotary Club, ready to give his presentation about insurance changes coming next year.

“Does anyone know what happened on this date?” Neumann asked the crowd, pointing to the whiteboard. “It’s the year no fault became law in Michigan. Here’s what I’m finding: it’s been that long, and nobody still knows what it’s about.”

Neumann, an insurance agent at Farm Bureau Insurance in Dowagiac, gave a presentation to the Dowagiac Rotary Club about insurance changes coming in July of next year after a 2019 vote was passed in the Michigan legislature.

Neumann said there are two systems of law: torte and no-fault. He torte can be described as if someone is in and accident, they have to pay for it. No-fault can be described as someone has to pay for an accident no matter what.

In Michigan, the law states when a resident buys car insurance, if they want their car covered, they get insurance for it.

“It really is a good system,” Neumann said. “There’s no fighting. There are no delays. Your company takes care of you. His company takes care of him. It’s too darn expensive.”

A second date was written on the board, July 1, 2020. This date represented the date new changes to Michigan’s auto no-fault law will be in effect for auto insurance policies issued or renewed after that date. On May 25, 2019, the legislature passed a new Michigan no- fault law that changes how Michigan’s auto no-fault insurance law will now work.

Come July, every Michigan driver will still need to have Michigan property protection insurance.

“You have to carry a million dollars if you hit something in Michigan,” Neumann said, “A building, a bridge, a McDonald’s or whatever.”

What has changed with the new Michigan no-fault law is that drivers will no longer be required by law to purchase unlimited no-fault Michigan personal injury protection benefits. Drivers after July 1, 2020, will have a choice of no-fault medical benefit coverage levels: $50,000 — if a driver is enrolled on Medicaid; $250,000; $500,000; or no limit.

“The legislature and their fine wisdom back in 1973, said, ‘we don’t want to be like those other states,’” Neumann said. “We are going to do unlimited.”

Today, there are 12 no-fault states in the U.S. including Michigan.

Another change will be that drivers with Medicare will have the ability to opt-out of no-fault personal injury protection medical benefits. A person would have to sign a form to do so, Neumann said.

“Think very hard before you opt-out,” Neumann said. “Today, Medicare does not coordinate with auto insurance. If you opt-out, there is no coordination, so Medicare has to jump in. I’m saying, ‘be very careful.’”

The other group that who can opt-out of no-fault personal injury protection medical benefits are those with health insurance.

Another change, Neumann said, is when rating an auto policy, companies cannot use a person’s sex, marital status, occupation, zip code or Fico Credit Score.

Lastly, Neumann left the Rotary Club with his insurance agent advice regarding the new changes coming to no-fault insurance in Michigan.

“It’s going to be fascinating,” Neumann said.  “Do you think these national companies that deal with 50 states, do you think they are going to know this? I think the best advice is get a company that just operates out of Michigan.”