The 2020 changes to Michigan’s automobile no-fault insurance laws have created a lot of confusion. You might have questions, including what is personal injury protection (“PIP”) coverage? Why is it important? Don’t worry – we’re here to help.
Before diving into your questions, we recommend reading our blog third-party car accident claims and Michigan's no-fault laws – it will provide you with a better insight on what’s to follow.
What is PIP?
In no-fault states like Michigan, personal injury protection (“PIP”) coverage helps pay for injuries that a driver or passenger may sustain, regardless of who is at fault in the accident. PIP is designed to ensure that injured parties are compensated quickly, usually within 30-60 days following an accident. However, PIP does not cover property damage.
PIP can cover expenses such as:
- Medical expenses, including ambulance services, medication, surgical treatments, and more.
- Medical mileage, for reimbursement of transportation costs to and from medical appointments.
- Funeral expenses, in the event of a fatal accident.
- Lost wages, for individuals who are unable to work.
- Attendant care, for individuals who need assistance with personal care, such as dressing, bathing, personal grooming, and more.
- Household services, for individuals that need help with tasks like cleaning, shopping, childcare, and more.
What Are The PIP Coverage Options in Michigan?
Since July 2020, Michigan drivers can choose from six PIP coverages including:
- Unlimited PIP option– Covers all reasonable medical expenses for recovery, care, and rehabilitation.
- $500,000 PIP option– Covers up to $500,000 for all reasonable medical expenses for recovery, care, and rehabilitation.
- $250,000 PIP option– Covers up to $250,000 for all reasonable medical expenses for recovery, care, and rehabilitation.
- $250,000 with exclusions– Covers up to $250,000 for all reasonable medical expenses for recovery, care, and rehabilitation. This option is available to individuals with non-Medicare health coverage that covers auto accidents. Other household members may be excluded from the PIP coverage if they have Qualified health Coverage.
- $50,000 PIP option– Covers up to $50,000 for all reasonable medical expenses for recovery, care, and rehabilitation. This option is available to individuals enrolled in Medicaid whose household members have alternative auto insurance or health insurance covering auto accidents.
- Opt-out option– This option is available to individuals with Medicare Parts A and B, provided household members have alternative auto insurance or health insurance covering auto accidents.
The premium cost of PIP coverage depends on several factors, including your chosen cover level and personal circumstances. Generally, high PIP limits lead to higher premium costs.
Why PIP is Important
Most Michigan residents must have PIP coverage for their vehicles, with options ranging from $50,000 to unlimited coverage (provided the benefits are reasonable and related to the accident). PIP can help pay for lost wages and required services around the household which can help the injured person focus more on recovering from their injuries.
However, even the highest amount of PIP coverage may not be sufficient for some life-altering injuries, which could require hundreds of thousands of dollars – or more – for full recovery. That’s why we recommend consulting with a car accident attorney to help you secure compensation beyond what PIP can provide.
Need an Attorney? Call Grewal Law PPC Today
When PIP is not enough, it may be time to file a personal injury claim. If this situation applies to you, give Grewal Law PPC a call today. We can aid you with all your car accident needs to help you get the compensation you deserve. When you’re ready, contact our legal firm at (888) 211-5798 to request a free consultation with one of our attorneys.
