Personal Injury Protection (PIP) Insurance in Michigan

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  • Personal Injury Protection (PIP) Insurance in Michigan

When getting car insurance in Michigan, there are a few things you should know about, one of which is personal injury protection, or PIP. This state is one of 13 that legally require drivers to have PIP, also known as no-fault coverage, on their auto insurance policies

PIP is considered a no-fault coverage because it helps pay for the policyholder’s medical expenses in the event of an accident, regardless of who was at fault. Michigan PIP insurance requirements come with some caveats and have changed in recent years, so let’s take a closer look at this coverage type and how it works in the mitten.

Everything You Need to Know About PIP Insurance in Michigan

Michigan personal injury protection (PIP) is a legally required auto insurance coverage all drivers with vehicles registered in the state must have on their policies. It is a no-fault coverage that most often works in tandem with a no-fault law to allow drivers to receive financial assistance from their own insurance policy to go toward their medical expenses in the event of an accident. States that don’t have no-fault laws defer to tort or at-fault coverages to help the victims of accidents receive financial assistance for their medical bills or vehicle repairs.

If a registered driver is injured in an accident, they will default to their PIP coverage to help cover their medical expenses. Then, if the policyholder’s medical expenses exceed their limit or the other party in the accident is deemed at fault, the injured driver will then file a claim with the at-fault party’s insurance to receive assistance from their liability coverage. 

However, Michigan has one of the nation’s highest numbers of uninsured or underinsured drivers, with over 25% of drivers lacking adequate car insurance. If a driver were to be injured in an accident caused by an uninsured driver, once the policyholder’s coverage limit is met, they’re on the hook for their remaining medical expenses since the at-fault party doesn’t have any liability coverage. Situations like this represent why ensuring you have enough car insurance coverage to match your financial status is essential.

What Is PIP Insurance in Michigan?

PIP insurance in Michigan is a legally mandated auto insurance coverage that all drivers must have on their car insurance policies. It covers the policyholder’s medical expenses should they be injured in a car accident, regardless of who is at fault for the accident. While many other coverage types will only assist the policyholder if they’re injured in a car accident, Michigan PIP coverage can extend to cover the policyholder if they’re injured by a vehicle as a pedestrian or while riding a bicycle.

PIP may also cover medical expenses for a policyholder’s passengers should they be injured in an accident. This coverage follows the policyholder, not the car registered on the auto insurance policy. So, should the policyholder sustain injuries in an accident while they’re a passenger in a vehicle driven by someone without adequate insurance, the policyholder can invoke their PIP coverage.

What Does PIP Insurance Cover in Michigan?

Personal injury protection in Michigan helps the policyholder pay any medical expenses accrued due to a car accident deemed reasonable or necessary. These medical expenses may extend beyond those accrued during a hospital visit and can even encompass funeral costs or lost wages.

If you or your passengers suffer serious injuries as a result of a car accident, your PIP may cover the following:

  • Hospital or Doctor’s visits
  • Ambulances
  • Therapy and/or rehabilitation
  • Surgeries
  • Diagnostic tests (X-Rays, CT Scans, etc.)
  • Prescriptions
  • Prosthetics
  • Loss of wages
  • Essential services (attendant care, child care, housekeeping, etc.)
  • Medical transportation (fare needed to get to and from medical appointments via transportation you aren’t driving like a bus or rideshare service)
  • Death benefit
  • Funeral expenses

Your Michigan PIP benefits may cover many expenses, but not without limitations. It coverage may cover many medical expenses up until your listed limit. However, some higher or long-term costs, like loss of wages, essential services, or death benefits, come with stipulations. 

For example, suppose you become permanently injured due to a car accident and can no longer work. Your PIP may compensate you for your lost wages if your insurer offers this feature with its PIP coverage. If that’s the case, you may be eligible to receive a monthly maximum for up to three years following your accident. These benefits aren’t taxable, so they may only make up 85% of your previous wages.

Should the policyholder or someone covered by their PIP die in a car accident, it may pay the policyholder’s surviving family what’s known as a survivor’s loss. The PIP payout in Michigan for a survivor’s loss is typically the unused sum of the policyholder’s PIP limit.

It’s crucial to consult your provider to see if their PIP coverage offers this benefit, additional benefits not mentioned here, or any of the benefits we have previously mentioned. The details of PIP coverage vary based on your insurer, so you must thoroughly research your provider’s PIP benefits before making any decisions about your provider or changing your coverage limits.

Is PIP Mandatory in Michigan?

PIP car insurance in Michigan is mandatory for every driver who has a car registered in the state. Drivers with Medicare, Medicaid, or qualifying health insurance coverage may be eligible for lower limits or to opt out entirely. It’s always best to consult your auto insurance company and a health insurance representative before deciding to lower your coverage limits or opting out entirely. 

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What to Know About the Michigan PIP Law

The Michigan PIP statute is put in place by the state’s no-fault law. The no-fault law requires drivers to carry two specific, no-fault coverages on their auto insurance policies: personal injury protection (PIP) and property protection insurance (PPI). The policyholder can invoke PIP to help them or their passengers cover their medical expenses due to the accident. 

Failure to adhere to this law can result in severe consequences, such as hefty fines, license suspension, or even jail time. Those who don’t have PIP coverage risk serious financial burdens if they get into an accident with another insufficiently insured person and suffer injuries. Without this coverage, you may be expected to pay all your medical expenses from your own pocket.

In Michigan, PIP claims must be filed within one year from the date of the car accident. Failure to file your claim on time could result in losing access to PIP benefits. 

Does Michigan Require Minimum PIP Coverage?

Michigan requires all drivers to have the appropriate minimum PIP coverage on their auto insurance policies. While the law previously required all Michiganders to have unlimited coverage on their policies, a reform to the no-fault law in 2020 now allows drivers to select from a range of limits. 

The Michigan personal injury protection requirements and limits are listed as follows:

  • Unlimited coverage for all drivers and passengers
    • Available to all drivers
  • $500,000 limit per person per accident
    • Available to all drivers
  • $250,000 limit per person per accident
    • Available to all drivers IF they have a health insurance policy with a deductible under $6,000 that extended to injuries related to auto accidents
  • $50,000 limit per person per accident
    • Only available for drivers who have Medicaid. Consult your insurer or a healthcare representative to see if you need to meet additional requirements.
  • No PIP coverage (opt out)
    • Only available for drivers with Medicare parts A and B. Consult your insurer or a healthcare representative to see if you need to meet additional requirements.

What Is the Minimum PIP Coverage in Michigan?

The minimum PIP coverage for most drivers is $250,000 if they have sufficient healthcare or $500,000 if they don’t. Some drivers may be eligible for lower limits or opt out entirely if they have Medicare or Medicaid. Opting out without adequate healthcare is illegal, and drivers without PIP could face significant legal consequences.

The consequences of failing to meet the legal PIP requirements extend further than license suspension or jail time. On top of those repercussions, insufficiently insured drivers aren’t allowed to sue the at-fault party in an accident for medical expenses. An uninsured driver may also be liable for any expenses an insured party might accrue that aren’t covered by their auto insurance coverages.

Why Is PIP Insurance Required in Michigan?

Michigan requires all drivers to carry PIP insurance because of its no-fault law. The no-fault law mandates drivers carry no-fault coverages, such as PIP and PPI, on their auto insurance policies. Many states put no-fault laws in place to address several related issues.

In Michigan, over 25% of drivers are uninsured. This means if an insured driver with the necessary PIP coverage were to get into an accident caused by an uninsured driver, the insured driver would be able to cover the cost of their medical expenses with their auto insurance policy instead of relying on the uninsured, at-fault party.

Michigan also has a relatively high population, meaning the roadways are more densely packed than in other states. This fact, coupled with the high number of uninsured drivers in the state, makes required PIP coverage in the state a no-brainer since drivers can’t rely on their fellow drivers to have the necessary at-fault coverage.

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Do I Need PIP Insurance in Michigan?

You do need personal injury protection (PIP) insurance in Michigan. It’s required by law in the state, among other coverage types. While all drivers in the state  legally need this coverage, it’s also generally an excellent coverage type to carry on your policy. Depending on your limit and the benefits your insurer offers with PIP coverage, it provides extensive coverage for all medical expenses should you get injured in an auto accident.

Here at Clovered, we recommend drivers have as much PIP as they can afford, especially in a state like Michigan, with such a high population of uninsured drivers. It’s more cost-effective to pay high premiums because of a high limit than to pay lower premiums for a low limit and accrue medical debt because you were injured in an auto accident and didn’t have sufficient coverage.

Should I Keep Unlimited PIP Michigan?

Unlimited PIP in Michigan was required until 2020, when reforms to the no-fault law allowed drivers to select from a few different limits. While unlimited PIP may not be required, carrying it isn’t a bad idea if you can afford the higher premiums that come with unlimited PIP. 

The benefits of unlimited PIP are plentiful and extend beyond relieving the burden of medical expenses like hospital visits or surgeries due to an accident. Unlimited coverage is especially beneficial for adults who have families they support. If the breadwinner of a family is severely or permanently injured due to an accident, unlimited coverage from many insurers will kick in to cover the loss of wages and help with childcare expenses. While it may be expensive, PIP pays out in the long run, should the worst-case scenario occur.

How Much Is PIP Insurance in Michigan?

The cost of PIP insurance in Michigan varies from policy to policy but typically makes up for anywhere between 35% to 50% of your total premium. Since the average full coverage premium in Michigan is about $2,190 annually, this coverage may cost anywhere from an estimated $765 to $1,095. 

Insurers use details about you, like your age, the type of car you drive, your driving record, and several other factors to determine your premiums, so no two premiums are identical. Michigan doesn’t permit insurers to use personal details about you, like your gender, marital status, or credit score, when determining your premiums.

When determining the cost of PIP, it’s essential to consider your deductible. A deductible is an amount you will pay out of pocket after filing a claim before your coverage may kick in to cover the remaining cost. Policies with a low deductible have higher premiums, and policies with a high deductible have lower premiums. The average Michigan PIP deductible can range from $500 to about $2,000, depending on your limit.

Do I Need PIP in Michigan if I Have Health Insurance?

In many cases, you need PIP in Michigan even if you have health insurance. Those with Medicare, Medicaid, or another qualifying health insurance carrier may be eligible for lower limits or to opt out completely. It’s always best to communicate with your insurer and a health insurance representative before making any changes to your coverage to see if you’re eligible for modified PIP.

If you believe you should be eligible to opt out of PIP, but your current insurer won’t allow it, you may consider switching your insurer. Whether you want to opt out of PIP, want to get cheaper coverage, or are just curious about what else is out there, the best way to see if you’re getting the best policy for you is to get and compare quotes online

Using our free quoting tool, you can get an auto insurance quote for Michigan right here at Clovered. If you prefer to speak with an agent directly about your quote or have any questions regarding PIP or vehicle insurance in Michigan, feel free to call us at 833-255-4117 or email us at

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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