Personal Injury Protection (PIP) is the part of your Michigan auto policy that pays your own medical bills after a crash, no matter who was at fault. Before July 2020, PIP medical coverage was unlimited for everyone. Now you choose a level, and that choice can matter more than anything else on your policy. Here is what each option means in plain English.
The six PIP medical options
Under MCL 500.3107c, the available levels are:
- Unlimited. Reasonable, necessary, crash-related medical and rehab care for life, with no dollar cap. This is the default if no valid selection form was signed.
- Up to $500,000 per person, per accident.
- Up to $250,000 per person, per accident.
- $250,000 with exclusions. Household members who have qualifying health coverage can be excluded from PIP medical, so their health insurance pays first.
- Up to $50,000. Only available if the named insured is enrolled in Medicaid and household members have other qualifying coverage.
- Opt out of PIP medical. Only available if the named insured has Medicare Parts A and B and household members have other qualifying coverage.
"Qualifying health coverage" generally means a health plan that does not exclude or limit auto accident injuries and has an individual deductible under the state's limit, which the Department of Insurance and Financial Services (DIFS) adjusts over time. Your insurer may ask for proof.
What does not change with your choice
The medical limit only caps medical, rehab and related care. Other PIP benefits generally stay the same at every level, including lost wages (85% of gross pay for up to three years, subject to a monthly maximum) and replacement services (up to $20 a day for household help). The chosen limit also usually applies to you, your spouse and resident relatives covered by the policy.
What happens if your bills go over the limit
Serious injuries such as brain injuries, spinal injuries or long hospital stays can pass $250,000 quickly. If your PIP medical limit runs out:
- Your health insurance may pick up some costs, depending on the plan.
- You may be able to sue the at-fault driver for medical expenses and wage loss above your PIP limits (MCL 500.3135(3)(c)). That claim is only as good as the at-fault driver's liability coverage, which may be as low as $50,000 per person if they chose the lower option.
- Your own underinsured motorist coverage, if you bought it, may help when the other driver's coverage is too small.
Also note that medical providers are paid under a fee schedule (MCL 500.3157), and there are limits on family-provided attendant care hours. Those rules apply even with unlimited coverage.
Checklist: reviewing your PIP choice
- Find your declarations page and confirm which PIP medical level you have.
- Ask for a copy of the signed selection form. If there isn't a valid one, the coverage may default to unlimited.
- Check your health plan. Does it exclude auto injuries? What is the deductible?
- Count who lives with you and what coverage each person has.
- Look at your bodily injury limits and consider underinsured motorist coverage.
- Compare the premium savings against the risk of a catastrophic injury.
Do you need a lawyer?
You don't need a lawyer to pick coverage, but you should talk to one if you were hurt and your insurer says your limit is used up, says you chose a lower limit than you remember, or denies a claim. Selection disputes and excess medical claims can be technical. Our injury cases are handled on a contingency fee: no attorney fee unless money is recovered, as explained in your written fee agreement.
Learn more about our car accident and PIP cases, or read who pays your medical bills after a Michigan car accident.
Hurt in a crash and worried about your PIP limit?
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📞 Call (313) 566-4802Send a messageAttorney responsible for this content: Ali Moubarak (P81729), Moubarak Law Firm, P.C., 1 Parklane Blvd., Ste 729 E, Dearborn, MI 48126 · (313) 566-4802.
Attorney advertising. This article is general information, not legal advice, and laws change. Every case is different, and results in past cases do not guarantee a similar outcome. Contacting us does not create an attorney-client relationship.