So what is PIP and what should I choose?

 

Personal Injury Protection(PIP) really does three important things:

  1. Provides Medical payments as a result of auto-related-accidents.  We say "related" because if you were a pedestrian, a bicyclist,  a motorcyclist, or you entering or exiting a vehicle and were struck by a vehicle; your medical bills would be covered by PIP of the driver that hit you.
  2. Provide wage-loss while you were unable to work.  Michiganders would have a benefit of up to 85% of their wages in disability payments for up to three years while recovering.
  3. Provide long-term care and modifications to your home.  For example: if a person looses the use of their legs as a result of a car accident, modifications would be made to the home to allow for wheelchair access.  These modifications could include a ramp, modifications to the shower, counters, widening of doors, etc.  Assistance could also include payments for yard care, skilled nursing, and meal preparation.
Click to download a sample PIP Selection Form

 

Prior to the reform, every motorist carried unlimited PIP coverage.  The new reform act introduced new PIP options that motorists can choose to as a way to lower their premiums.  We encourage you to schedule a free consultation with one of our specialists to discuss your options.  Carriers and Agents are required to give insured forms that discuss the benefits and risks of the coverage options described below.  

 

PIP Medical Coverage Options

There are six PIP medical coverage levels available to Michigan drivers. Under these limits, this amount is the most a driver’s auto insurance company will pay per person per accident for an injured person’s expenses under PIP medical coverage.

  1. Unlimited coverage

  2. Up to $500,000 in coverage

  3. Up to $250,000 in coverage

  4. Up to $250,000 in coverage with PIP medical exclusion(s)
    Exclusion is available for a named insured with non-Medicare health coverage that covers auto accident injuries and/or for household members if they have health insurance that will cover auto accident injuries.

  5. Up to $50,000 in coverage
    Available if the named insured is enrolled in Medicaid and their household members have another auto insurance policy, Medicaid or other health insurance that will cover auto accident injuries.

  6. PIP medical opt-out
    Available if the named insured has Medicare (Parts A and B). Any of their household members must have another auto insurance policy or health insurance that will cover auto accident injuries.

If a PIP medical option is not chosen by the insured, the unlimited PIP medical option is selected by default.

 

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