Michigan no‑fault and PIP: the six choices, in plain English

PIP medical and other PIP benefits

Michigan’s required no-fault policy includes Personal Injury Protection (PIP), Property Protection Insurance (PPI) and residual liability. PIP provides benefits for eligible accident injuries regardless of fault, subject to the law and policy. The PIP medical choice limits medical benefits; other PIP benefits, such as wage loss and replacement services, have separate rules. Required no-fault coverage does not generally pay to repair your own car after a collision.

The six medical choices

The six PIP medical choices are unlimited, $500,000, $250,000, $250,000 with qualifying exclusions, $50,000 for qualifying Medicaid households, and a qualifying Medicare opt-out. Dollar limits apply per person, per accident. Unlimited applies by default when no valid selection is made. Choosing a cap can leave medical costs above it to other coverage or to you.

Eligibility and health coverage

With the $250,000 exclusion option, a named insured being excluded needs qualified health coverage other than Medicare; an excluded spouse or resident relative needs qualified health coverage. The $50,000 option requires the named insured to be enrolled in Medicaid, with the spouse and all resident relatives enrolled in Medicaid, carrying qualified health coverage, or covered by another auto policy with PIP medical. Opt-out requires the named insured to have Medicare Parts A and B, and the spouse and all resident relatives to have qualified health coverage or PIP medical under another auto policy. Documentation and selection forms apply. Review eligibility at renewal and notify your auto insurer promptly if supporting health coverage ends.

Before selecting a limit

Compare the medical benefits that PIP provides with your health plan’s deductibles, networks, exclusions and services. A lower medical limit or exclusion can leave costs for you to pay. Review the named insured, spouse and resident relatives individually and obtain the required proof before selecting an exclusion or opt-out. Carly can help you understand the DIFS form and risks; the choice remains yours.

Other parts of the policy

Michigan’s default bodily injury liability limits are $250,000 per person and $500,000 per accident. You can elect lower limits, down to $50,000/$100,000, by completing the required selection process and acknowledging the risks. Liability can arise for serious injuries and other circumstances allowed by law. A judgment exceeding your limit can put your income and assets at risk. Discuss higher limits and any umbrella requirements with Carly.

Michigan requires $1 million in PPI coverage. It pays for covered damage your vehicle causes in Michigan to other people’s property, including buildings, fences and properly parked vehicles. It does not generally cover damage to moving vehicles or repairs to your own car. Out-of-state property damage liability is a separate part of your policy.

Michigan’s mini-tort framework allows recovery of up to $3,000 for vehicle damage not covered by insurance, subject to fault and statutory requirements. You may face a claim if you are 50% or more at fault. Recovery can include a collision deductible; it is not a substitute for insuring a vehicle’s full value. Optional limited property damage liability coverage addresses this exposure. Ask whether it is included in your quote.