If you are a Michigan driver, you may have noticed on the statements page of your auto insurance policy that you are paying for Personal Injury Protection Coverage (PIP). Along with many other states, Michigan requires PIP insurance. In other words, you must have PIP Insurance in Michigan to legally drive. So what is PIP and how does PIP coverage work in Michigan?
What is PIP insurance?
Your auto insurance policy includes several types of coverage. In almost all states, liability insurance is required. Liability helps cover injuries and property damage suffered by the other party when an accident is your fault. In Michigan, the minimum liability insurance is:
- $ 50,000 for bodily injury liability per person
- $ 100,000 for accidental bodily injury liability
- $ 10,000 for Accidental Property Damage Liability (in another state)
But that’s not all you need. Michigan is also one of the 12 clear states. In no-fault states, you get personal injury protection coverage to help pay for injuries you or your passengers suffer in a car accident, regardless of who is at fault. Michigan policyholders will need to select one of six PIP medical coverage options that gives them the coverage they need at the best price.
Michigan also requires property protection insurance (PPI), which will pay up to $ 1 million for property damage caused in Michigan, and residual liability insurance, which prevents drivers from being sued in certain circumstances. .
How does Michigan PIP work?
Here are some important things to know about Michigan PIP coverage:
- It is mandatory for all Michigan drivers.
- It will pay up to your coverage limit for injuries sustained by you or your passengers.
- It can be used even if you are the cause of the accident.
- It is designed to be paid quickly, typically within 30 to 60 days of an accident.
- It does not pay for property damage of any kind.
For example, if you sustain an injury of approximately $ 10,000 in medical costs as a result of an accident for which you were not at fault, your PIP will likely help you cover those medical costs. If it is later determined that the other driver is at fault for the accident, their liability may also extend to help cover your injuries.
Is PIP Mandatory in Michigan?
PIP is required for all Michigan drivers. As of July 1, 2020, new auto insurance reform laws in Michigan may allow you to opt out of PIP medical coverage if you have both Medicare Part A and Part B. and other members of the household have put in place qualified health insurance which covers road accidents. Drivers attempting to opt out must show their insurance company proof that they – and any other member of their household – qualify for eligibility.
How Much Does PIP Cost in Michigan?
New laws put in place in 2020 require auto insurance companies to reduce PIP premiums for the next eight years. For example, if you have unlimited PIP coverage in Michigan as part of your insurance, you will get an average of 10% or more off your premium per insured vehicle. If you have $ 50,000 PIP coverage, your average reduction will be 45% or more per insured vehicle.
Keep in mind that insurance premiums vary based on a wide range of criteria. Your insurer will look at the age and type of vehicle you drive as well as your driving history, insurance history, age, etc. Your premium will also vary depending on whether or not you have optional coverages such as collision and all perils, as well as the types of coverage mandated by the state.
Key Points To Note About PIP Insurance In Michigan
- PIP is mandatory in Michigan.
- The PIP can cover the medical expenses of the driver of the insured vehicle and the passengers of that vehicle.
- PIP can also pay for a portion of your lost wages and essential household services.
- The PIP can be used regardless of the author of an accident.
- The cost of the PIP will be affected by several factors, including one of the six medical coverage options you choose.
Frequently Asked Questions
How and when to file a PIP complaint?
Your PIP claim must be filed as soon as possible after your accident. Make your claim by calling your insurance agent or by using the claims tool on your insurer’s website if they have one. Keep all receipts and medical documents, as your insurer may need them when processing your claim.
Are PIP and medical payments the same?
PIP and medpay have some similarities. Both can be used to pay for medical bills after an accident, and both apply to both the driver and passengers of the vehicle. But PIP is a bit more expensive than medpay, which can only be used for medical needs, such as health insurance deductibles, emergency care, and diagnostics. PIP coverage in Michigan can cover all of these things, but can pay for some of the wages lost due to your accident and help cover routine household services if you cannot meet your household responsibilities due to injuries sustained as a result. of a covered claim.