Michigan auto insurance Pip optionMichigan Auto Reform

Michigan reforms auto insurance. Effective July 1, 2020, you can choose your insurance protection (PIP) options. Signed into law by Governor Gretchen Whitmer, the PIP reform options take effect July 1, 2020, more details on changes can be found at the Michigan DIFS site. After this date, the only people who will be eligible for benefits through the MCCA after an accident will be the people who chose the  “unlimited”  No-Fault coverage in their auto insurance policies. 

Michigan 5 New PIP options

  1. Unlimited PIP coverage (MCCA pays after the first $580,000) 
  2. $500,000 PIP coverage option 
  3. $250,000 PIP coverage option 
  4. $50,000 – Medicaid eligible consumer’s option 
  5. Opt-out of PIP coverage entirely, if you have separate health insurance that covers collision injuries.  This option you need to be certain that your health insurance will pay because if they do not pay auto-related claims, you will have no coverage for your medical bills.

Michigan no Medical options after an accident

Without the unlimited PIP Choice, Michigan accident victims in Michigan will have the same choices as other states. Drivers will need to use one of the following options to pay medical bills.

  1.  Sue, the at-fault driver for “excess” medical expenses under their policy.
  2. Place a claim with your health insurance policy, assuming they do not have auto accident exclusions.
  3. Apply for  medical care from  government plan Medicaid or Medicare;
  4. File a claim under an “underinsured motorist”  or “underinsured motorist” with your insurance carrier. 
  5. Pay the bill, or you may have to file for bankruptcy. 

Michigan PIP Benefits

Michigan PIP coverage includes the following:

  • All reasonable and necessary medical and rehab expenses
  • 85% of lost wages up to the monthly maximum (currently $5,452/month) not to exceed three years
  • Household replacement services, up to a maximum of $20/day, not to exceed three years
  • If accident results in death, surviving dependents benefits for loss of income up to the monthly maximum not to exceed three years.

Finally, for more information on what the new Michigan Catastrophic Claims Association fee will click MCCA New Fee.