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Choosing PIP Medical Coverage
Personal Injury Protection (PIP) Choice
Michigan drivers are now able to choose a coverage level appropriate for their needs and budget.
The new law requires that auto insurance companies and agents give policyholders forms that describe the benefits and risks of the coverage options. Drivers may also want to talk with an auto insurance agent, insurance company, or financial advisor to discuss their personal auto insurance needs.
Drivers may need information from their health insurer or employer identifying individuals covered under their health insurance and a statement that the health policy does not exclude or limit auto accident injuries and has an individual deductible of less than $6,000. Medicare and Medicaid participants may need proof of enrollment.
PIP Medical Coverage Options
There are six PIP medical coverage levels available to Michigan drivers. These levels represent the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.
- Unlimited coverage
- Up to $500,000 in coverage
- Up to $250,000 in coverage
- Up to $250,000 in coverage with PIP medical exclusion(s)
Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.
- Up to $50,000 in coverage
Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy, Medicaid or other health insurance that will cover auto accident injuries. For more information about Medicaid proof of enrollment, review the DIFS Medicaid ID Card Guide for Auto Insurers and Insurance Agents.
- PIP medical opt-out
Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.
If a PIP medical option is not chosen by the insured, the unlimited PIP medical option is selected by default.
Under Michigan’s new auto insurance law, each auto insurance company is required to reduce statewide average PIP medical premiums for eight years. Drivers’ premiums will depend on their individual circumstances and the coverage they select. If drivers choose to opt out of PIP medical, the entire PIP medical portion of their premium will be eliminated but excluded members will have no PIP medical coverage under the policy.
For policies issued or renewed after July 1, 2020, insurance companies are subject to the following overall statewide PIP coverage premium reductions:
- An average 45% or greater reduction per vehicle for the $50,000 PIP option
- An average 35% or greater reduction per vehicle for the $250,000 PIP option
- An average 20% or greater reduction per vehicle for the $500,000 PIP option
- An average 10% or greater reduction per vehicle for the unlimited PIP option
Drivers may wish to discuss their PIP options with their insurance company or licensed insurance agent.