What is pip insurance michigan

See what’s changing for Michigan drivers regarding personal injury protection (PIP) benefits

What is Michigan’s car insurance reform?

Michigan’s new no-fault law means drivers have more options for personal injury protection coverage, also known as “PIP benefits.” PIP covers medical bills from injuries sustained in an auto accident, as well as rehabilitation costs, lost wages, attendant care (services tending to an injured person) and other expenses. While personal injury protection has always been mandatory in Michigan, the new reform means you have the freedom to select a PIP coverage that best represents your needs and budget. Here are the six choices:

• Unlimited coverage: Pays for all allowable expenses pertaining to your care, recovery, and rehabilitation resulting from a covered accident, including attendant care. You pay more for the unlimited coverage option, but the choice reduces your out-of-pocket expenses in the event of a claim.
• $500,000 limit: Pays up to $500,000 per person per covered accident. This option likely costs less than unlimited coverage, but any expenses over $500,000 will be paid by your health insurance or out of your own pocket.
• $250,000 limit: Pays up to $250,000 per person per covered accident. While this option may cost less than higher coverage limits, any expenses greater than $250,000 will be paid by your health insurance or out-of-pocket.
• $250,000 limit with some or all persons excluded from PIP: Pays up to $250,000 per person per covered accident with you, your spouse, a resident relative(s), or household member(s) excluded from PIP coverage. You pay a lesser premium for this coverage, due to reduced coverage for anyone who is excluded. Proof of qualified health coverage is required for each household member that is excluded.
• $50,000 limit: Pays up to $50,000 per person per covered accident. This coverage is only available if you’re enrolled in and provide proof of Medicaid. All resident relatives must have and provide proof of Medicaid or qualified health coverage. This option costs less than carrying higher coverage limits but any expenses over $50,000 are the responsibility of your health insurer or paid on your own.
• No PIP coverage: If you have and provide proof of Medicare Parts A and B, and all resident relatives have and provide proof of qualified health coverage you can select no PIP coverage. That means you and anyone else covered under your auto policy will rely on health coverage to pay for medical expenses resulting from an auto accident.

FAQs about the Michigan auto insurance reform bill

When did the Michigan auto insurance bill take effect?

The reform became effective on July 2, 2020.

Do I need to make changes to my existing Progressive auto insurance policy?

There’s nothing you need to do right now. Your next renewal offer will include information about the new coverage options, so you can make your desired changes to your policy.

What if I’m a new Progressive customer?

If you’re shopping for an auto insurance policy on or after July 2, 2020, the new coverage options will be displayed when you quote.

How will I know which PIP coverage to choose?

Determining which options you’re eligible for depends on whether you and your family carry qualified health coverage and how well you’re covered. Remember, as outlined in the PIP choices above, your health insurance is responsible for any expenses above your PIP coverage limits. If you or any of your family members don’t have qualified health coverage, choose enough PIP coverage to protect against paying for injuries from an accident out of your own pocket. Also, pay attention to your health insurance deductible. A high deductible could result in unwanted out-of-pocket expenses for injuries that aren’t covered under a lower limit PIP option.

For more information on Michigan auto insurance laws, call 1-866-749-7436 to speak with one of our licensed representatives. Or get an auto insurance quote online to see your coverage options.

Call the SSC Contact Center at 5-2000 from the Ann Arbor campus, (734) 615-2000 locally, or (866) 647-7657 toll free, Monday through Friday from 8 a.m. to 5 p.m.

Limitations

The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend, or terminate them. Every effort has been made to ensure the accuracy of the benefits information in this site. However, if any provision on the benefits plans is unclear or ambiguous, the Benefits Office reserves the right to interpret the plan and resolve the problem. If any inconsistency exists between this site and the written plans or contracts, the actual provisions of each benefit plan will govern.

What Is Personal Injury Protection (PIP) Insurance?

Personal injury protection pays the expenses of an insured person and his or her passengers when no fault can be established.

Your car insurance policy is made up of different types of insurance that protect you in different situations in which you’d otherwise be financially liable. Some of those coverages are legally required, but others may be optional, depending on where you live and whether you own or lease your car.

Personal injury protection, or PIP, is a type of car insurance that pays the expenses you and your passengers incur after being injured in a car accident, regardless of who was at fault. Also called “no-fault car insurance” and “first-party benefits coverage”, PIP coverage can pay for medical expenses, lost wages, custodial services like child care, and even funeral expenses.

However, personal injury protection may be less important than other types of car insurance because its coverage overlaps with your health insurance or disability insurance. You may be able to save on your auto insurance premiums by reducing your PIP insurance to your state’s legal minimum as long as you still have the coverage you need.

Read on to learn more about personal injury protection insurance:

• What’s covered by PIP insurance?
• Who does PIP insurance cover?
• What’s not covered by PIP insurance?
• Which states require PIP insurance?
• What’s covered by PIP insurance?

Personal injury protection insurance pays for expenses that result when you, someone insured by your policy, or your passengers are hurt in a car accident if no fault can be established. The expenses have to be related to the injury, which means that PIP won’t cover property damage.

As with all types of auto insurance, your PIP coverage is bound by a limit of liability, meaning the maximum obligation the insurance company has to you. After a claim, once the carrier has paid up to its limit of liability, you’ll have to pay any excess costs out of pocket. You can pay higher premiums to increase your limit of liability under this or any protection. The amount you purchase in PIP coverage and how much you pay for it will be listed on your declarations sheet.

Note that if one party is at fault, then his or her liability coverage will apply to the other party’s expenses instead of the latter’s PIP coverage. Additionally, your injury protection may be limited by a deductible, the amount you have to pay out of pocket for a given claim before the insurer’s obligation kicks in.

Additionally, while the coverage in each of these protections may be limited, you can always purchase more coverage for each provision. Many insurers offer not only basic personal injury protection coverage but also additional personal injury protection coverage, at an even higher premium, that increases the payments provided for a given expense and adds new provisions that may not be included under the basic no-fault insurance terms.

Policygenius can help you find a car insurer that offers enough coverage in every component of car insurance, including personal injury protection, if applicable, for a policy that won’t break the bank.

Your PIP coverage applies to a range of expenses:

Medical bills

No-fault insurance covers your medical bills and other people insured by your policy, except for expenses paid for by health insurance. Your coverage extends to you even if you’re not driving at the time of the injury, such as if you get hit by a car while walking. Your PIP coverage can also pay for your health insurance deductible.

Medical bills are usually defined as “reasonable” or “necessary” expenses, which may include:

• Surgery, nursing, emergency care, X-rays, prescriptions, dental care, and prosthetic devices.
• Therapy, rehabilitation, and remedial care.
• Psychiatric and psychological care.
• Optometry services.
• Speech and audiological services.
• Ambulances.
• Nonmedical care in accordance with your religious beliefs.

In some states, you may be offered only this part of no-fault insurance. In these states, your auto insurance policy won’t necessarily have PIP coverage, but it will have medical payments coverage, which is often abbreviated to MedPay. It’s also possible to have both MedPay and PIP coverage, the latter of which kicks in first for a claim.

Lost wages

If you can’t work as a result of an injury you received from a car accident, some forms of PIP insurance will replace some of your wages. However, not every insurer offers this part of PIP insurance, and it may cost extra to add to your base car insurance policy.

Although every insurer offers different terms, the amount you’re allowed to claim in lost wages may be limited by your policy. Insurers usually reduce the amount you’re owed by 15% as well as any applicable deductible. Depending on state law, your earnings reimbursement may also be reduced by any social benefits you receive, such as workers’ compensation or Social Security disability insurance.

If you need more robust coverage for lost wages, a long-term disability insurance policy may pay higher benefits and last for a much longer period of time than the lost earnings provision in your auto insurance policy.

Death benefit

Personal injury protection coverage may even pay out a small sum, called a survivors loss, to the survivors of someone killed in a no-fault auto accident, resulting in wrongful death. The amount is usually limited to a dollar amount or the remainder of any unused PIP benefits.

However, if you already have life insurance, the death benefit offered by PIP coverage may seem small in comparison. Since life insurance also covers you if you die in a car accident, the PIP provision for death benefits isn’t worth it on its own if you can afford a term life insurance policy.

Funeral expenses

As with the death benefit provision, your auto insurance’s PIP coverage may also include benefits that provide reimbursement for funeral expenses. Likewise, funeral expenses coverage will also be limited by the terms of your policy.

Since funerals can be costly, the funeral expenses provision of your PIP coverage may not provide you with the amount of coverage you’d need for full reimbursement. For that, an affordable term life insurance policy may be a better choice.

Essential services

When your injury causes you to become unable to perform necessary services, the expenses you incur to hire people to perform those services may be eligible for reimbursement under your PIP coverage.

Such essential services include:

• Child care
• Lawn mowing
• House cleaning
• Shoveling snow
• Doing laundry

Who does PIP insurance cover?

No-fault insurance covers the following people:

• You, the person insured by the policy, while occupying a car or when hit by another car.
• Any of your immediate family members, while occupying a car or when hit by another vehicle.
• Any other person while occupying your insured car.
• What’s not covered by PIP insurance?

Personal injury protection coverage comes with several exclusions. If the injury you suffer in an accident was caused by one of these exclusions, you’d be ineligible to receive reimbursement under your PIP terms.

Common exclusions include:

• The driver caused the accident intentionally.
• The driver was committing a crime, including fleeing the police.
• The driver was driving the car for a fare, such as for Uber or as a taxi.
• The injured person was struck by or was occupying a car you or an immediate family member owns that was not insured.
• The injury was caused because of dangerous human activity, such as war, insurrection, rebellion, or a nuclear explosion.

Additionally, property damage is not covered by personal injury protection. If the property damage was caused by another driver, then his or her property damage liability coverage will provide reimbursement. If you created the accident, or if a force beyond your control (other than a driver) caused the damage, your collision insurance or your comprehensive insurance will reimburse you.

Which states require PIP insurance?

There are two types of states which require liability in a car accident. In a no-fault state, each driver’s insurance covers their damages and expenses from a car accident, regardless of who caused the accident. In an at-fault state, also known as a tort state, the party who is liable for the damage is responsible for paying, whether through his or her car insurance or out of pocket.

In no-fault states, you’re required to have personal injury protection insurance. In tort states, PIP insurance may not even be offered at all; or it may be required as an add-on to your liability insurance, which means you can still sue the other party as well as receive injury expenses reimbursement from your car insurance company; or it may be completely optional.

In tort states that don’t offer PIP coverage, you may still be able to get MedPay coverage. Always talk to your car insurance company to make sure you’re getting the coverage you need.

No-fault states

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Puerto Rico
• Utah

At-fault states where personal injury protection is required

• Arkansas
• Delaware
• Maryland
• Oregon
• At-fault states where personal injury protection is offered but not required
• New Hampshire (car insurance, in general, is not mandatory in New Hampshire, but fault is assigned when an accident occurs)
• South Dakota
• Texas
• Virginia (car insurance is optional in Virginia if you pay an uninsured motorist fee, but the fault will still be assigned in an accident)
• Washington
• Wisconsin
• Washington, D.C.
• The District of Columbia mandates that drivers have auto insurance, but the coverage may be either at-fault or no-fault; personal injury protection is optional.

When you’re injured in an accident, if you purchased PIP, you can decide whether you want to accept PIP benefits or file a claim through the other party’s liability coverage. However, even if you do take PIP benefits, you may still be able to file a claim through the other party’s liability coverage if your injuries are particularly severe and receive additional reimbursement for your medical and rehabilitation expenses.

But if the injured person doesn’t have PIP, he or she will have to file a claim against the other party’s liability coverage.

Contact Us

Regardless of your experience with PIP, make sure you have a Michigan personal injury attorney on your side. Contact our skilled professional days today for a FREE consultation. (248) 996-9954