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Personal Injury Protection (PIP)
and the New Michigan Auto Insurance Reform Law

One of the biggest changes with Michigan’s Auto Insurance Reform Law is that, beginning July 2, 2020, you can choose your Personal Injury Protection Allowable Expenses (PIP AE) coverage, which may save you money.

Personal Injury Protection (PIP AE) helps cover expenses for injuries in an auto accident. PIP coverage is the largest part of your auto insurance premium and usually makes up about half of your total cost. Here are some resources specific to Michigan to help you choose the right individual PIP option* for you and maximize your savings.

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The New No-Fault Auto Insurance Reform

Personal Injury Protection

What is Personal Injury Protection? What are Allowable Expenses?   Arrow-down

What are my Personal Injury Protection Allowable Expenses (PIP AE) coverage options?   Arrow-down

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*Your new PIP coverage options are for Allowable Expenses coverage, a component of PIP (PIP AE), that includes but is not limited to medical expenses. Please not that certain PIP AE options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the No-Fault Act for complete details. Subject to regulatory approval. Discounts and savings opportunities subject to eligibility requirements. Coverage is subject to eligibility terms, conditions, expulsions and limitations.

3 Please note that certain PIP coverage options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the No-Fault Act for complete details. This summary is being provided for general information purposes only. Subject to regulatory approval. Coverage is subject to eligibility, terms, conditions, exclusions and limitations.

4 Unlimited: Insured may select unlimited PIP AE Coverage with MCCA involvement. This is the coverage required by law in Michigan prior to No-Fault Reform.

5 $250,000 PIP Exclusion: Individuals who qualify for this option will not be charged a PIP premium by their auto insurer. If an individual chooses this option, and they are injured in an automobile accident, their medical benefits will be covered by their Qualified Health Coverage (QHC) provider. Individuals who purchase this option will not be eligible for PIP Allowable Expenses. QHC is health or accident insurance that does not exclude or limit coverage for injuries related to auto accidents and has a deductible of $6,000 or less per person. Insureds who have QHC, or their spouse or resident relative(s) in the same household who have QHC or are enrolled in Medicare Parts A and B are eligible. If not all household residents are eligible, it is still possible to elect this option, with the exclusion applying only to eligible individuals.

6 Allowable Expenses $50,000 – Medicaid Only: Allowable Expenses coverage option for insureds enrolled in Medicaid. A spouse and/or resident relative(s) in the same household must also be enrolled in Medicaid, be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage, or have QHC.

7 Allowable Expenses Opt-out – Medicare Only: In order to choose a $0 limit, insureds must be enrolled in Medicare Parts A and B. However, a spouse and any resident relative(s) in the same household must also be enrolled in Medicare Parts A and B, have other PIP Allowable Expenses coverage, or have QHC. Insureds will be required to provide documentation showing that they, their spouse, and any resident relative(s) are eligible in order to elect this option.

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