Choosing PIP Medical Coverage

Personal Injury Protection (PIP) ChoiceSenior Woman Driving

Michigan drivers will need 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.

Here is a sample of the PIP medical coverage form.
PIP Medical Coverage Form

PIP Medical Coverage Options

There are six PIP medical coverage levels available to Michigan drivers. Under these limits, this amount is the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.

  1. Unlimited coverage

  2. Up to $500,000 in coverage

  3. Up to $250,000 in coverage

  4. 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.

  5. Up to $50,000 in coverage
    Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy or health insurance that will cover auto accident injuries.

  6. 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.

Premium Reductions

Under Michigan’s new auto insurance law, each auto insurance company will be 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  licensed insurance agent.