Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Personal injury protection (PIP) coverage is a type of auto insurance that helps pay for medical bills, lost wages, and other expenses if you or your passengers have an accident-related injury, regardless of fault. Since Michigan is a no-fault state, all drivers need to carry PIP in addition to basic liability coverage. But you can choose how much medical coverage you need.
Here’s what Michigan drivers need to know about personal injury protection and finding car insurance coverage.
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How PIP coverage works in Michigan
Michigan state law requires drivers to have personal injury protection (PIP). But drivers have the right to choose from several different medical coverage levels:[1]
Unlimited coverage (the default plan)
Up to $500,000 in coverage
Up to $250,000 in coverage, for drivers who have health insurance that’s not Medicare
Up to $50,000 in coverage, for drivers enrolled in Medicaid
PIP medical opt-out, for drivers who have both Medicare Part A and Part B health insurance or have coverage from another auto policy with PIP insurance
Important Information
Under Michigan law, if you don’t select a coverage option, your insurer will automatically enroll you in unlimited coverage, which could be costly.[2]
Steps to reject PIP coverage in Michigan
PIP coverage is mandatory in Michigan, so you can only opt out of coverage if you qualify for certain exceptions. To reject PIP coverage, follow these steps:
Review your coverage options. Check with your insurer or agent to qualify for a lower coverage option or to opt out of PIP coverage. (Michigan insurers legally have to provide drivers with information that describes the benefits and risks of each coverage level.)
Provide documentation. The required paperwork may include proof of enrollment in Medicare, Medicaid, health insurance, or another auto insurance policy that includes PIP coverage.
Confirm PIP coverage level. Check with your insurer to confirm the status of your enrollment in a lower-level coverage option or if you qualify for the PIP medical opt-out.
What does PIP cover?
If you or your passengers have injuries from a car accident, PIP helps cover the following costs, regardless of fault:[3]
Medical expenses
PIP helps pay for medical treatment costs (minus your deductible) if you or your passengers incur an injury in a car accident.
Lost wages and income protection
If an accident-related injury prevents you from working for a while, PIP can often compensate you for lost wages.
Funeral expenses
If someone passes away in an accident or due to an injury from an accident, PIP helps cover burial, cremation, or funeral costs.
Rehabilitation costs
PIP typically pays for necessary physical or occupational therapy needed to recover after an accident-related injury.
Care assistance
If you need help while you recover, PIP often provides coverage for home medical assistance.
Essential services
If you have an injury and need to hire someone to help with “essential services” for your household, like caring for children or cleaning the house, PIP can help cover the cost.
What PIP excludes
After an accident, PIP offers a lot of financial help if you or your passengers have injuries. But it doesn’t cover medical expenses above your policy’s coverage limits, injuries to other drivers, injuries that happen while driving for work, injuries from an accident that happened while committing a crime, or pain, suffering, or emotional distress.
PIP insurance also doesn’t cover damage to your vehicle or personal property, damage to other people’s property or vehicles, or theft. But you can purchase full-coverage insurance or other coverage, like collision and comprehensive insurance, for added financial protection.
Medical payments vs. PIP coverage
Some states allow drivers to carry medical payments (MedPay) coverage that’s only for medical expenses. This is usually different from a PIP policy, which also covers other non-medical costs after an injury, like lost wages. But since Michigan is a no-fault state, PIP is a requirement.
Unlimited medical coverage is standard for PIP plans in Michigan, but drivers can choose from several lower medical coverage levels or qualify to opt out.
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Filing a PIP claim in Michigan
If you have an accident-related injury in Michigan, follow these steps to file a PIP coverage claim:
Contact your insurance company. You can usually start the claim process over the phone, on an app, or through the insurer’s website.
File the claim. Provide details about the accident, such as involved parties, the nature of the injuries, and when and where the crash occurred.
Provide documentation. Your insurer may need copies of medical bills, invoices, receipts for covered losses, and proof of missed work from your employer.
The claims process can take a few weeks, and your insurer may need additional information while investigating your PIP claim. Stay in touch with your insurance company and make sure to respond to any requests quickly to keep the process moving.
Michigan PIP FAQs
Michigan requires PIP coverage by law. Here’s a closer look at some common questions that can provide more clarity about PIP insurance for Michigan drivers.
What is personal injury protection in Michigan?
Personal injury protection in Michigan is a type of mandatory insurance that helps cover the cost of medical expenses, lost wages, and other types of expenses if you or your passengers have an accident-related injury.
What are the limits on a personal injury policy in Michigan?
The default amount for medical coverage on a personal injury policy in Michigan is unlimited. But you can choose lower coverage limits or opt out in select cases. Your medical limit in Michigan may not affect other coverage limits for non-medical expenses like lost wages, depending on your PIP policy.
Is PIP worth it in Michigan?
Michigan requires PIP coverage, since it’s a no-fault state. But choosing the right medical coverage level helps protect your finances if you or your passengers have an accident-related injury, especially if it’s serious or fatal.
Is PIP mandatory in Michigan?
Yes. As a no-fault state, Michigan requires PIP. You must carry this insurance, but you can choose your coverage level and may be able to opt out if you meet certain eligibility criteria.
Do you need PIP if you have health insurance?
Yes. Michigan requires PIP, but you may be able to choose a lower medical coverage limit or opt out of medical coverage if you have a qualifying health insurance plan or are a Medicaid or Medicare participant.
Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare.
Sarah has been a contributor at Insurify since December 2022.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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