Understanding Pip Auto Insurance In Michigan

Personal Injury Protection (PIP) insurance is mandatory in Michigan. It covers medical bills, lost wages, and other costs associated with auto accident injuries for the insured, their passengers, and household members. Michigan drivers can choose between six levels of PIP coverage, including unlimited PIP. The new auto insurance law in Michigan allows drivers to choose a coverage level appropriate for their needs and budget.

What is covered by PIP insurance in Michigan?

Personal Injury Protection (PIP) insurance is mandatory in Michigan. It covers medical bills, lost wages, and other costs associated with auto accident injuries for the insured, their passengers, and household members.

PIP insurance covers:

• Medical costs such as ambulance rides, surgeries, hospital stays, diagnostic tests, doctor's visits, and prescription medications.
• Lost wages, covering up to 85% of the insured's usual salary if they are unable to work due to their injuries.
• Replacement services, such as lawn care or dog walking, if the insured is unable to perform routine tasks.
• Attendant care, for those who need help with health needs like showering, dressing, feeding, and medical transportation.
• Funeral or burial expenses in the event of death.

In Michigan, drivers can choose from six levels of PIP coverage:

• Unlimited coverage: Provides unlimited coverage for medical bills and associated costs.
• Up to $500,000: Covers up to $500,000 in PIP medical costs for all drivers.
• Up to $250,000: Covers up to $250,000 in PIP medical costs for all drivers.
• Up to $250,000 with medical exclusion(s): Available if the insured or a household member has non-Medicare health insurance that covers auto accident injuries.
• Up to $50,000: For those enrolled in Medicaid, with household members covered by another policy or health insurance for auto accident injuries.
• PIP medical opt-out: For named insureds with Medicare Parts A and B, and household members with alternate insurance coverage for car accident injuries.

It is important to note that PIP insurance does not cover certain expenses such as property damage or pain and suffering. Michigan drivers should carefully consider their needs and budget when choosing their level of PIP coverage.

Who is eligible for PIP insurance in Michigan?

In Michigan, Personal Injury Protection (PIP) insurance is mandatory unless you meet certain criteria. As of July 1, 2020, drivers in Michigan can opt out of purchasing unlimited PIP coverage if they have an eligible health care plan. To be eligible, your health insurance policy must cover auto injuries and have a deductible of $6,579 or less. This is known as Qualified Health Coverage (QHC).

If you are enrolled in Medicare Parts A and B, you can opt out of PIP as long as your spouse or any relative living in your household also has QHC or auto insurance that includes PIP. If you are an active member of the armed services, Tricare coverage is considered QHC, but VA coverage for veterans is not.

If you meet the criteria for opting out of PIP, you must show your auto insurance agent proper documentation, such as a letter confirming your QHC.

It's important to carefully consider your options before changing your auto insurance policy. While opting out of PIP may result in some savings, it could also be a costly decision if you are involved in an auto accident.

What are the costs of PIP insurance in Michigan?

The cost of Personal Injury Protection (PIP) insurance in Michigan depends on several factors. As of September 2024, the average cost of Michigan state minimum auto insurance with $250,000 of PIP coverage is $844 per year or about $70 per month. However, the cost of PIP insurance in Michigan varies based on individual circumstances and the level of coverage selected.

Factors Affecting the Cost of PIP Insurance in Michigan:

• Level of Coverage: Michigan drivers can choose from six levels of PIP coverage, including $50,000, $250,000, $500,000, and unlimited coverage options. The higher the coverage limit, the higher the premium.
• Individual Circumstances: Factors such as age, driving record, claims history, and income can impact the cost of PIP insurance.
• Health Insurance Status: If a driver has Medicare Parts A and B and all household members have alternate insurance coverage for car accident injuries, they may be able to opt out of PIP insurance, reducing their overall auto insurance costs.
• Insurance Company: Premiums can vary across different insurance companies, so it is recommended to compare rates for the same level of PIP coverage from multiple providers.

PIP Coverage Premium Reductions:

Under Michigan's new auto insurance law, insurance companies are required to reduce statewide average PIP medical premiums for eight years. The specific reductions for different coverage levels are as follows:

• 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.

It is important to note that the cost of PIP insurance in Michigan has been a subject of recent changes and reforms, with the goal of making auto insurance more affordable for residents.

How do I file a claim for PIP insurance in Michigan?

Personal injury protection (PIP) insurance is mandatory in Michigan. It covers medical bills, lost wages, and other costs associated with auto accident injuries for the driver, their passengers, and household members.

How to File a Claim for PIP Insurance in Michigan

To collect PIP benefits after a car accident, you must file an application for Michigan PIP benefits with the relevant auto insurance company within one year of the accident. This deadline is crucial, as failing to file within this period will result in a loss of benefits.

When filing a PIP claim, you will generally need to provide the following documents:

• A PIP application submitted to your insurance company
• A physician's note detailing your injuries
• A lost wage verification form if you are seeking wage-loss benefits

Your insurance company has 30 days to make the payment after receiving "reasonable proof" of what is owed. Therefore, it is important to promptly submit all necessary documents and medical receipts to support your claim.

What happens if I don't have PIP insurance in Michigan?

Personal injury protection (PIP) insurance is mandatory in Michigan. It covers medical bills, lost wages, and other costs associated with auto accident injuries for you, your passengers, and household members.

If you don't have PIP insurance in Michigan, you are driving without insurance. This means that you will not be able to claim any of the benefits that PIP insurance provides. This includes:

• Medical bills and expenses
• Medical mileage
• Wage loss
• Replacement services
• Attendant care
• Survivor's benefits

In addition, if you are injured in an accident, you will not be able to sue the at-fault driver for excess medical benefits, lost wages, pain and suffering compensation, or vehicle damage.

Furthermore, you could be held financially liable for personal injury protection benefits paid by other insurance companies to other people injured in the accident, including the at-fault driver, even if you were not at fault.

Therefore, it is essential to have PIP insurance when driving in Michigan to ensure that you are protected in the event of an accident.

Frequently asked questions