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How Does PIP Coverage Work in Michigan?

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May 15th, 2021
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Michigan personal injury protection or “PIP’ is coverage under your auto insurance policy for the healthcare expenses associated with a car crash. After all, you will likely have significant medical bills, lost wages, and more. PIP applies to both injured policyholders and passengers.

Read below to learn more about PIP insurance in Michigan. If you are ready to file an insurance claim, you may benefit from working with our Michigan personal injury lawyers.

Do I Need PIP Insurance in Michigan?

Michigan is a no-fault state for car insurance. That means that a driver’s insurance pays for their losses in the event of a car accident. It does not matter who caused the accident. This is different than at-fault states, where the driver who caused the accident must pay for the other party’s damages.

Michigan PIP Requirements

Due to updated insurance law in Michigan, drivers must have PIP insurance unless they opt-out and have Medicare or qualified health coverage.

It’s best to talk to your insurance agent to determine what level of PIP insurance is best for you. It’s a good idea to select the highest option that you can afford. That way, if you are in an accident, you know your losses will be covered.

Some PIP limits are:

  • Unlimited PIP coverage
  • $500,000 limit
  • $250,000 limit
  • $250,000 limit with PIP medical exclusions – if you have qualified health coverage
  • $50,000 limit – if you have Medicaid or qualified health coverage

What Does PIP Insurance Cover?

If you have been injured in a car accident, you can get money from your PIP insurance policy. You may be able to collect compensation for:

Medical Expenses

All accident-related medical bills will be covered 100% up to the amount of benefits coverage selected I your auto insurance policy. Before July 1, 2020, all PIP policies covered an “unlimited” amount of medical expenses. However, for policies issued or renewed after July 1, 2020, it will only cover up to your limit, which may be unlimited.

Medical Mileage

PIP will also cover your transportation costs for traveling to and from medical appointments after a car accident. That includes mileage, bus fees, taxi fares, Uber/Lyft costs, and other transportation methods.

Wage Loss

If you could not return to work after a car accident, PIP will reimburse you for lost wages. These benefits are available for up to three years from the date of the accident. They are also subject to a monthly maximum. Benefits are not treated as taxable income, so payments are made at 85% of your wages.

Replacement Services

If you cannot do things for yourself after your wreck, PIP will pay up to $20 per day for up to one year for “ordinary and necessary services” that you can no longer do. That might include housekeeping, laundry, meal preparation, shoveling snow, and more.

Attendant Care

If you are so injured that you need an attendant to care for you 24/7 or on a limited basis, PIP will pay for that expense. Services may be done by a family member or a nurse from a commercial agency.

Call a Car Accident Lawyer for Help With a Claim

If you are injured in a wreck, you need to speak with a Michigan car accident lawyer right away. Davis Injury Lawyers, PLLC is here to explain how PIP works and help you file a claim. Don’t miss out on any of the money that you are entitled to.

Call us at (313) 462-7979 or use our online.