What Is The Michigan PIP Medical Coverage Options?
Buying auto no-fault insurance coverage, in Michigan, has become more complicated and more important than ever. As of July 1, 2020, the consumer must choose the level of PIP medical coverage through their insurance agent. Too many consumers will make the wrong choice, by selecting the cheapest cost coverage. However, the practical implications are confusing and dangerous to the consumer that does not select adequate PIP medical coverage.
Michigan auto PIP Medical Coverage Options:
As of July 1, 2020, the Michigan no-fault law allows the auto insurance company to offer six PIP medical coverage levels to consumer’s buying auto insurance. After carefully considering and selecting one of the six PIP medical coverage limits offered, a driver’s auto insurance company will pay per person per accident for an injured person’s medical expenses. We have assigned a rating for each level of PIP medical coverage offered by the car insurance company:
- The Best No Fault Medical Coverage Protecting Your Family - Unlimited PIP Medical coverage. We recommend this level of coverage to our clients.
- Second Best Coverage Protecting Your Family - Up to $500,000 in coverage
- Third Best Coverage Protecting Your Family - Up to $250,000 in coverage
- Fourth Best Coverage Protecting Your Family - Up to $250,000 in coverage with PIP medical exclusion(s)
Michigan allows an exclusion for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members, only if you have health insurance that will cover auto accident injuries. Your health insurance may have an auto accident injuries exclusion. You must know whether or not your health insurance will cover auto accident injuries to make the right decision.
- Danger - Fifth Best Coverage Protecting Your Family - Up to $50,000 in coverage
Michigan law makes this low level available if the named insured is enrolled in Medicaid and your household members have another auto insurance policy, Medicaid or other health insurance that will cover auto accident injuries. Your health insurance may have an auto accident injuries exclusion. You must know whether or not your health insurance will cover auto accident injuries to make the right decision.
- Danger - No PIP Medical Coverage Protecting Your Family - PIP medical opt-out
Michigan law makes this option available only if the named insured has Medicare Parts A and B. Any of your household members must have another auto insurance policy or health insurance that will cover auto accident injuries. You must know whether or not you’re your other household members have another auto insurance policy or health insurance that will cover auto accidents to make the right decision.
As you can see the options are very complicated and confusing. The low risk and best option is the “unlimited PIP medical coverage”. It is also the easiest to understand. If you are unsure of the level of PIP Medical coverage that you need, then either select “unlimited PIP medical coverage” or refuse all PIP medical options, but do not sign a waiver, and by default the insurance company must provide the unlimited PIP medical option coverage. You must read and understand each waiver you sign because the legal consequences are enormous to you and your family. Do not sign until you fully understand your rights and consequences.
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