Although each Insurance Company will handle the No Fault Auto Reform Choice Election a little differently. We thought it would be important to brief you on what to expect in general.
60 - 90 Days Prior to your renewal
For renewal dates after 7/2/2020, you can expect to receive a letter or email communication from the insurance company. The communication will outline your choices and include 2 election forms. A Personal Injury Protection (PIP) Choice Form providing 6 Options and a Bodily Injury Liability Declination Form. These are the forms that must be reviewed, completed and returned with the required documentation based on the election you make.
50 - 75 Days Prior to your renewal
You will have approximately 2 weeks to make your choice and return your forms to the insurance company.
If you do not return your choice forms by the required deadline your renewal policy will be issued with the state required default limits of Unlimited PIP and $250,000 Per Person / $500,000 Per Occurrence Bodily Injury Liability Limit.
Keep in mind if you elect to opt out of PIP coverage because you have health insurance, it will be your responsibility to call your medical insurance company and request a letter that certifies that your medical plan is a Qualified Health Plan under the law. This letter will be required to be submitted along with your PIP Choice election form to be processed.
25 - 45 Days Prior to your renewal
The insurance company will issue and mail your renewal with the limits selected if the forms were returned by the required deadline or if not returned the renewal will be issued with the default limits.
At least 20 days in advance you should receive your renewal in the mail.
Mid-Term Change Options
For those whose auto policy recently renewed, and you want to make changes to your PIP and Bodily Injury limits early, you will have the option of contacting the company or our office and request that we do a mid-term change to your policy. If you elect to make a mid-term change, the insurance company will require the 2 election forms to be returned with your elections indicated.
One of the key things to remember throughout this whole process, is that if you do nothing you will retain your Unlimited PIP Benefits and at least $250k/$500k Bodily Injury Liability at a minimum. This will be appropriate for about 85% of our clients. We don’t feel for most people it will be worth $100-$200 to give up your unlimited benefits. The fact is that this coverage probably comes into play on a very infrequent basis, but when there is a serious injury accident the unlimited benefits are worth every penny.
TDA is here for your all the way through the process, we want to make sure you make a fully educated decision and you understand the ramifications of any changes you elect to make. That’s our job as your Trusted Advisor. You can contact us at any time. Most of our carriers are standing by to help with your choice as well.