Michigan No-Fault Auto Insurance law
Under the new Michigan No-Fault law effective July 1, 2020, auto owners are now able to choose between six levels of Personal Injury Protection (PIP) medical coverage.
What is Personal Injury Protection (PIP)?
PIP covers unlimited “necessary and reasonable” medical and related services, including, attendant care, as well as paying 85% of lost wages and up to $20 a day for replacement services including housework, meal preparation or yard work for up to three years.
Six PIP Options to choose from
Prior to the new No-Fault insurance law, auto owners were required to purchase a No-Fault policy that comprised of unlimited PIP. With the new law, auto owners are now able to choose the amount of PIP coverage best suited for their needs.
- Unlimited PIP Coverage- This option implements the most complete coverage. It pays for all allowable medical and related expenses for an injured person’s care, treatment, recovery, and rehabilitation.
- Limited PIP Coverage of $500,000– This option will cover up to $500,000 per person per accident in PIP benefits for medical and related expenses.
- Limited PIP Coverage $250,000– This option limits PIP coverage to $250,000 per person per accident for medical and related expenses.
- Limited PIP Medical Coverage of $250,000 with Exclusions– This option allows policy holders who choose limited coverage of $250,000 to opt out of IP medical coverage for themselves, a spouse or resident, or relative. The excluded person(s) must have their own health care coverage other than Medicare or Medicaid that covers motor vehicle accident injuries. Anyone who is excluded will have no PUP coverage under the No0Fault law.
- Limited PIP Coverage of $50,000 for Medicaid Recipients– This policy is only available to applicants or named insureds who are enrolled in Medicaid. In addition, the policy holder’s spouse and resident relatives must have their own qualified health care coverage that covers auto accident injuries. This coverage can be provided by medicaid, private insurance or a separate No-Fault policy that includes PIP medical coverage.
- No PIP Medical Coverage– This option is available only to applicants of named insureds who are covered under Medicare parts A and B. Additionally, the policy holder’s spouse and resident relatives covered by the policy must have their own qualified health care coverage that includes coverage of auto accident injuries. This includes private insurance or another auto policy with PIP medical coverage.