Short Answer: It’s a discount, BUT you may also lose valuable income replacement coverage.
In Michigan, you have an option to waive the work-loss benefits within the no-fault Personal Injury Protection section of your policy. Personal Injury Protection provides for the payment of medical bills and lost wages if you are injured in an auto related accident. For PIP wage, this coverage replaces some of the income you would normally earn but cannot because of a covered auto accident that keeps you from work.
If you are retired or otherwise not in the workplace, an auto accident may not affect your wage income, since you are not earning a regular wage at a job that requires you to be there.
For example, a retired electrician no longer works a 8 to 5 job. Instead, they are living on social security and their 401 plan they contributed to over the years. Today, they spend most of their time at their grand children’s soccer games and volunteering. In this example, if the retired electrician were to be in an auto related accident, there would likely be no impact to their continuing income as social security and the 401 plan would continue to pay them while they recoup. In this situation, the “PIP Wage-loss waiver” and applicable premium discount may apply.
If this sounds like you, the ”PIP work-loss waiver” may be an option to consider. The benefit is that it will reduce your premium slightly since the insurance companies will not be paying for lost wages in an auto related claim. The downside is that you will not have any continuing income replacement paid by your auto policy in the event of an auto related accident.
Please use caution when applying this discount to your quote. Some companies will apply it to ALL DRIVERS on the policy incorrectly, especially if your spouse is still working. It is important to understand your situation to determine if the “PIP Work-loss Waiver” is a good option for you.
As always, your iSCHURING agent is ready to help. Just call 1-800-315-8740.
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