How Does Personal Injury Protection (PIP) Car Insurance Work in Michigan?

Personal Injury Protection, or "No-Fault" insurance, is a part of the Michigan No Fault Law and is meant to cover driver's medical bills in the event of a car accident. Payment is not dependent on who was at-fault in the accident, so even if you caused most of the damage, PIP will still cover you. While other states make PIP mandatory, Michigan has it's own set of laws and rules for the coverage. 

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What is Covered by Michigan PIP?

The Michigan No-Fault provision essentially consists of four parts: 

Medical Costs

PIP is widely inclusive in terms of what medical related bills are reimbursed up to your limits until you recover. The following are eligible for a PIP claim:

  • Medical Services and Medication
  • Surgical Services and Hospital Expenses
  • Rehab Costs
  • Diagnostic Services 
  • Ambulatory Services 
  • Treatment in accordance with a recognized religion

PIP Also Has Economic Benefits 

If you are injured in an accident, and are disabled, PIP will pay for your lost wages, up to three years, until you recover and go back to work. There are limitations however. You can only be paid 85% of your normal salary, or a max of $5,398 per week, whatever is smaller. You also receive up to $20 per day for services you would normally do, but now cannot. These services include doing laundry, cleaning the house, shoveling snow, etc. The work loss provision of PIP in Michigan does come with a $300 deductible however. 

PIP Also Covers Death Benefits 

If the worst were to occur in a car accident, and you as the policyholder were killed, PIP would pay for your funeral and burial expenses. You, or your next of kin, are entitled to at least $1,750 and at most $5,000. If you are killed in an accident, your dependents are also entitled to the work loss benefits you would receive if you were disabled. The limits are the same -- 85% of your normal wage or a max of $5,398 per week. 

Property Protection Insurance (PPI)

Unlike any other state, you are also required to hold property protection insurance in Michigan. PPI is meant to provide a quick and easy method of reimbursing others for damage your car has caused to a building, fence, wall, or stationary car. The mandatory limit is $1,000,000 for the entire policy. 

When and How to File a PIP Claim in Michigan 

Personal Injury Protection is known for being straightforward. If you are in a car accident, and are injured, you are eligible to file a PIP claim. It does not matter who caused the crash as opposed to bodily injury liability or property damage liability insurance. The coverage also extends to everyone in your household. If you or anyone in your household are injured in another vehicle that's not your own, or even in a bus or struck as a pedestrian by a car, you may use PIP benefits to cover medical expenses. 

When filing a PIP claim, you will generally need to provide two or three forms. The first is a PIP application that you would submit to your insurance company. The second would be a note from a physician detailing your injuries. The last would be an employee's lost wage verification form. You will only need this last one if you are opting for wage loss benefits. Your insurance company is not obligated to pay any expenses until they see a valid form of proof of injury. Once proof is submitted however, your company has 30 days to make the payment. If they do not comply within those 30 days, they will be charged interest. As a patient, you have up to one year to file the claim. If you wait any longer, you will not be entitled to benefits. 

Coordinated vs. Non-Coordinated Michigan Personal Injury Protection

Like in other "No-Fault" states, you may coordinate your health insurance with your PIP to help reduce costs on your premium. In a coordinated policy, PIP will still pay for your wage loss while your health insurance pays for your medical bills. So for example, if you are injured in a car accident, and cannot work for a month, your health insurance will pay for your medical bills while PIP will pay for your lost wages. Besides reducing your premium, coordinating may also make sense if your health insurance plan is wide-ranging and covers many services and options.

A downside to coordinating would be having to pay your health insurance deductible. The medical portion of PIP does not have a deductible, so filing a claim won't cost anything out of pocket. Furthermore, when you do not coordinate, you can waive the $300 deductible for the work loss benefits of PIP. You will have to weigh which option is more cost effective for you -- the reduced premium or not having to pay a deductible should you be injured in a car accident.

Know that if you are on Medicaid or Medicare or a self-funded Health insurance plan, you will not be able to coordinate with your PIP. 

How Much Does Personal Injury Protection Cost in Michigan?

Since PIP in Michigan is unlimited, it does come with a hefty price tag relative to other states' PIP costs. Furthermore, since Michigan does not allow its drivers to sue another driver for car damage compensation unless it was a special circumstance, you will most likely need collision insurance on your policy, driving prices even further upward. We took a look at sample quotes for a few sample drivers and compared the quotes. 

Health Care OptionType of DriverPIP Price Per Year
Coordinated 42 Year Old Married Male $582
30 Year Old Single Male $414
Non-Coordinated 42 Year Old Married Male $592
30 Year Old Single Male $422

As we mention above, coordinating your health insurance with your PIP does save you a little money, but it seems to be negligible overall, at least for our sample drivers. For ways on how to save on other parts of your car insurance, you can read through our detailed guide here

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