Auto Insurance Medical Wage Coverage In Michigan: What's Covered?

Michigan's auto insurance law requires all drivers to have personal injury protection (PIP) coverage, also known as no-fault insurance. This coverage pays for a driver's medical bills and lost wages after a car accident, regardless of who was at fault. PIP coverage is mandatory in Michigan, and drivers can choose between six levels of coverage, including unlimited PIP. The cost of PIP insurance in Michigan depends on various factors, such as the level of coverage, age, driving record, and income. This article will provide an overview of the medical wage coverage provided by PIP insurance in Michigan and how it works.

Wage loss benefits

The monthly maximum of wage loss benefits that can be claimed is adjusted periodically to reflect changes in the cost of living. For the period from October 1, 2023, to September 30, 2024, the maximum is $6,811 per month. It is important to note that these benefits will only reimburse 85% of the lost wages, and any wages lost beyond the monthly maximum can be claimed from the at-fault driver.

To claim these benefits, individuals must file a No-Fault application with the relevant auto insurance company within one year of the car accident date. Additionally, proof of income loss, a work disability certificate from a doctor, and wage verification from the employer are required to substantiate the claim.

Medical mileage

Michigan's No-Fault law entitles car accident victims to PIP benefits, which include medical mileage. These benefits are payable regardless of whether the victim was at fault and are paid by the victim's auto insurance company. PIP benefits are mandatory for all Michigan drivers and cover up to three years of wage loss benefits and replacement services.

Michigan drivers can now choose from six PIP medical coverage levels, including:

• Up to $500,000 in coverage
• Up to $250,000 in coverage
• Up to $250,000 in coverage with PIP medical exclusion(s)
• Up to $50,000 in coverage
• PIP medical opt-out

Prior to July 1, 2020, all policies provided unlimited medical coverage. Now, drivers can opt out of PIP insurance if they have Medicare Parts A and B, and their household members have alternate insurance coverage for car accident injuries.

Replacement services

Michigan's No-Fault Act includes replacement services as one of the benefits car accident victims are entitled to. This provision will pay up to up to $20 a day for household work that the injured person is no longer able to perform themselves due to their injuries, and therefore must hire someone else to carry out. These services can include investment income, housekeeping, lawn and garden maintenance, car maintenance, meal preparation, babysitting/childcare, and driving family members to school and appointments. Notably, this benefit is payable for three years from the date of the accident, and the $20 per day maximum is not a cumulative benefit, meaning any amount that is not used in a particular day is lost.

To be eligible for replacement services, the injured person must file a No-Fault application with the applicable auto insurance company within one year of the accident date. It is important to keep careful records regarding replacement service claims, including signed receipts from the person who performed the service, explaining what was done, when it was done, and the charge incurred. A doctor's statement confirming the need for the service may also be required.

It is worth noting that replacement services are distinct from attendant care services, which are unlimited in amount and payable for life. Replacement services are typically domestic-related, while attendant care services are related to the injured person's care, recovery, or rehabilitation.

Attendant care

• Bathing
• Dressing
• Eating
• Administering medication
• Using the toilet
• Grooming
• Walking
• Getting in and out of bed
• Transportation
• Wound care
• Supervision and monitoring

The new Michigan car insurance law imposes a restriction on in-home, family-provided attendant care services. Starting on July 2, 2021, No-Fault auto insurance companies are only required to pay for 56 hours per week of in-home, family-provided attendant care services. This limitation does not apply to commercially-provided services, nor does it prohibit auto insurance companies from contracting to cover services beyond the 56-hour limitation.

In Michigan, family members are entitled to be paid for attendant care services provided to a relative accident victim. However, many family members are unaware of this and insurance adjusters often do not inform them that they can submit attendant care service claims.

Excess PIP benefits coverage

In Michigan, PIP benefits will pay for your medical bills and lost wages after you've been injured in a car accident. These benefits are guaranteed by the Michigan No-Fault law and are paid regardless of whether you were at fault. They are paid by your own auto insurance company, which means you don't have to sue the at-fault driver.

Prior to July 1, 2020, all policies provided "unlimited" medical coverage. However, for policies issued or renewed after July 1, 2020, unlimited coverage is one of several coverage level options that drivers may select from. The other options are:

• A limit of $50,000 on accident-related medical expenses for drivers enrolled in Medicaid.
• A limit of $250,000 on accident-related medical expenses.
• A limit of $500,000 on accident-related medical expenses.
• Opting out of No-Fault PIP medical benefits altogether for drivers on Medicare.

If you sustained significant or catastrophic injuries in a wreck, the cost of your medical care will likely exceed the limits of your PIP insurance policy. In this case, your options are limited to your health insurance or Medicaid. If you haven't spoken with a car accident lawyer yet, it is recommended that you do so.

When your medical expenses exceed the amount of PIP medical coverage you purchased, you can seek those excess medical bills from the at-fault driver by filing a third-party lawsuit with the help of an experienced attorney. Your lawyer will also explore how well the responsible driver was insured at the time of the crash. If they were uninsured or underinsured and you purchased UM/UIM coverage, you could turn to your own insurer for reimbursement of leftover medical costs.

It is always recommended that Michigan drivers purchase as much auto insurance as they can.

Frequently asked questions