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.

Frequently Asked Questions

What is the best PIP coverage option under Michigan's new No-Fault Law?

We recommend that consumers continue to purchase unlimited lifetime PIP allowable expense coverage to fully protect themselves and their families. While this option may cost more, serious injuries can result in medical expenses that quickly exceed lower coverage limits.

Can I opt out of PIP coverage completely?

Yes, but only under specific circumstances. You can opt out if you have qualifying health insurance that covers auto-related injuries with deductibles under $6,000, or if you're covered under both Medicare Parts A and B. However, opting out means you won't be eligible for any PIP allowable expense benefits if injured while occupying a motor vehicle.

Is $500,000 in PIP coverage enough for serious injuries?

While $500,000 may sound adequate, hospitalization and lifetime care expenses for serious injuries can exceed this amount very quickly. Traumatic brain injuries, spinal cord injuries, and other catastrophic injuries often require millions of dollars in medical care and rehabilitation over a lifetime.

What is the $50,000 Medicaid coverage level?

This option is available only when the named insured is covered under Medicaid, and their spouse and resident-relatives are also covered under Medicaid, have other qualified health insurance, or have auto coverage through a different policy. Qualified health insurance must cover car accidents and have deductibles under $6,000.

How does the Medicare opt-out provision work?

If you're covered under both Medicare Parts A and B, you can completely opt out of all no-fault allowable expense benefits. This also applies to your spouse and resident-relatives who have Medicare coverage, other qualifying health coverage, or other no-fault PIP coverage under a different auto policy.

What happens if I choose inadequate PIP coverage?

If you select a lower coverage level and are seriously injured in an auto accident, you may be responsible for medical expenses that exceed your policy limits. This can result in significant financial hardship and may prevent you from receiving the ongoing care you need to recover.