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Do I Have to Have PIP Coverage Under the New Michigan No-Fault Law?

Last year, a new bill was signed into law that grants motorists the option to choose the amount of Personal Injury Protection (PIP) coverage they want to receive on their no-fault insurance bill, an amount which was previously fixed. This new no-fault law goes into effect on July 1, 2020, at which point Michigan‘s motorists will have to choose which level of no-fault medical protection they want for all insurance policies issued or renewed after that date.

Do I Have to Have PIP Insurance Coverage in Michigan?

No. The new Michigan no-fault law allows the option to completely opt out of PIP coverage under MCL 500.3107d.

The option to opt out is available to those who satisfy the following conditions:

  • You have Medicare
  • You, your spouse, and any relative of either who resides in the same household has “qualified health coverage” or another form of coverage under MCL 500.3107(1)(a).

“Qualified health coverage” can mean either of the following:

  • You or a loved one has other health or accident coverage to which both of the following apply:
    • The coverage does not exclude or limit coverage for injuries related to motor vehicle accidents.
    • Any annual deductible for the coverage is $6,000 or less per individual.
  • You are granted coverage under parts A and B of the federal Medicare program established under subchapter XVIII of the Social Security Act, 42 USC 1395 to 1395lll.

So, I Can Opt Out of PIP Insurance Coverage. But Should I?

The benefit of the new law is that you now have the right to choose which form of coverage you want, meaning that you can opt out of PIP coverage should you both qualify and wish to do so. However, the Goodman Acker team highly discourages this.

The risks associated with not having PIP no-fault insurance coverage are too great. The cost of getting into a car accident that causes serious, permanent injuries or wrongful death is astonishingly high. If you opt out of no-fault insurance coverage there is very little chance you will be able to adequately afford medical care.

The only truly safe option is to choose unlimited coverage. While this option is the most expensive, you will likely only save a few dollars a month if you opt for a lower cost plan, so we believe the trade off is worthwhile.

So, while you are welcome to take your chances by opting out, we advise you not to. Ultimately, however, the choice is yours to make and yours alone.

Do you have more questions about car insurance coverage under Michigan’s new no-fault law? Reach out online or call our Detroit no-fault lawyers at (248) 965-5205 for more information and a free consultation.

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