Personal Injury Protection (PIP) coverage is a type of auto insurance that pays allowable expenses for medical care, recovery, rehabilitation, wage loss, replacement services, and some funeral expenses if policyholders are in an auto accident. In Michigan, PIP coverage is mandatory for all drivers, and there are different levels of PIP medical coverage available, allowing drivers to choose a coverage level appropriate for their needs and budget. The levels of PIP medical coverage available in Michigan are as follows:
- Unlimited coverage
- Up to $500,000 in coverage
- Up to $250,000 in coverage
- Up to $250,000 in coverage with PIP medical exclusion(s)
- Up to $50,000 in coverage
- PIP medical opt-out for those with Medicare (Parts A and B) and other household members with another auto insurance policy or health insurance that covers auto accident injuries
Key points about PIP coverage in Michigan include:
- PIP coverage includes some funeral expense benefits and survivor’s benefits paid to dependents if injuries from an auto accident result in the policyholders death.
- Lower coverage limits have less expensive premiums than plans with higher or unlimited PIP medical coverage.
- PIP coverage can cover the cost of products and services that may not be covered by health insurance, such as rehabilitation and attendant care.
- Drivers who are already on Medicare can opt out of PIP medical coverage under the auto No-Fault law.
- PIP coverage is designed to be paid swiftly, usually from 30 to 60 days following an accident, and it can be used even if the policyholder is the cause of the accident.
In summary, PIP coverage provides important insurance benefits for car accident-related injury expenses and is a crucial component of auto insurance in Michigan and other states where it is required.
