Michigan No-Fault PIP Coverage Options

OPTION #1: LIFETIME PIP allowable expense coverage

Consumers can continue to purchase lifetime, uncapped PIP allowable expense coverage that has been mandatory coverage under the original No-Fault Law. We recommend that consumers continue to purchase this coverage to protect themselves and their families.

OPTION #2: THE $500,000 COVERAGE LEVEL

Consumers can elect to purchase $500,000 of lifetime PIP allowable expense coverage. This sounds like adequate medical coverage; however, hospitalization and lifetime care expenses can exceed this coverage amount very quickly.

OPTION #3: THE $250,000 COVERAGE LEVEL

Consumers can elect to purchase $250,000 of lifetime PIP allowable expense coverage. This amount of coverage is not adequate for accident victims who are seriously injured.

OPTION #4: THE $50,000 MEDICAID COVERAGE LEVEL

Consumers will have a $50,000 allowable expense benefit option that will be available only when: (1) the named insured is covered under Medicaid, and (2) the spouse and resident-relatives of the named insured are also covered under Medicaid, or have other qualified health insurance, or have auto coverage through a different auto policy.

Qualified health insurance is defined as:

1. Health insurance that covers car accidents; and
2. Your health care deductibles are under $6,000.00.

OPTION #5: THE $250,000 OPT-OUT PIP EXCLUSION

Consumers who have other health and accident insurance coverage available may be able to completely opt-out of any PIP allowable expense benefit coverage, subject to the following requirements: (1) the named insured, his and/or her spouse, and all resident-relatives who desire such an opt-out must have other health and accident coverage that covers auto-related injuries, and (2) the policy must provide for the payment of $250,000 of lifetime PIP benefits for all resident-relatives of the named insured who do not have other qualifying health and insurance coverage level. Any person who selects this coverage level is not eligible for any PIP allowable expense benefit coverage for medical and rehabilitation expenses if those opt-outers are injured while occupying a motor vehicle.

OPTION #6: THE MEDICARE OPT-OUT PIP EXCLUSION

The new law allows a complete opt-out from all no-fault allowable expense benefits for those persons who are covered under both Parts A and B of Medicare, as well as the spouses and any resident-relatives of those persons who have Medicare coverage, other qualifying health coverage, or other no-fault PIP coverage under a different auto policy.

Logeman, Iafrate & Logeman, P.C., is a personal injury law firm that has helped accident victims recover the compensation they need to rebuild their lives and take care of their families for over forty-five years. Our firm is a leader in Michigan no-fault insurance law and is here to help.

Our experienced personal injury attorneys serve clients throughout Michigan and are committed to helping the injured recover full and fair compensation for their economic losses, pain, and suffering. Please feel free to contact the firm at any time for a free consultation, advice and help with your auto accident injury claim.

This article is provided for informational purposes only and does not constitute legal advice. Consult a qualified attorney at Logeman & Iafrate, P.C. for advice regarding your individual situation.