Michigan Personal Injury Protection (PIP)
Auto Insurance — Educational Guide
Updated for 2026 Michigan Auto Insurance Reform
What Is Michigan PIP Coverage?
Michigan Personal Injury Protection (PIP) is a mandatory, no-fault coverage that pays for allowable medical expenses, rehabilitation, lost wages, and replacement services for you and your passengers if injured in a car accident — regardless of who caused the crash.
Under Michigan’s 2020 auto insurance reform, drivers can now choose their level of PIP medical coverage, ranging from unlimited to lower, capped amounts.
Key Components of Michigan PIP
Medical Expenses
Covers “reasonable and necessary” medical care for injuries sustained in an auto accident, including:
- Rehabilitation services
- In-home nursing care
- Home and vehicle modifications
Wage Loss
Reimburses lost wages for up to three years if injuries prevent you from working.
Replacement Services
Covers costs (up to $20/day) for chores or services you cannot perform yourself, such as housekeeping or childcare.
Attendant Care
Covers in-home, family-provided care for up to 56 hours per week after a serious injury.
Death Benefits
Provides financial support to the family if a person is killed in a car crash.
PIP Medical Coverage Options
As of 2026, drivers may choose from several levels of PIP medical coverage based on their needs and available health coverage:
| Coverage Level | Description | Eligibility |
| Unlimited | Covers all accident-related medical expenses for life — no cap. | All Michigan drivers |
| $500,000 | High-limit protection per person/accident. | All Michigan drivers |
| $250,000 | Mid-level coverage per person/accident. Can be paired with exclusions for family members with qualified health coverage. | All Michigan drivers |
| $50,000 | Lower-limit option for eligible Medicaid enrollees. | Medicaid enrollees only |
| Opt Out | Eligible individuals may opt out of PIP medical coverage entirely. | Medicare (Parts A & B) or qualified health coverage that covers auto accidents |
Important Considerations
No-Fault System
Because Michigan is a no-fault state, your own insurance company pays for your medical expenses even if you were not at fault in an accident. You do not need to wait for fault to be determined to receive benefits.
Coordination of Benefits
If you have health insurance that covers auto accidents, you may choose to “coordinate” your benefits to lower your PIP premium. This means your health insurance pays first, and PIP acts as secondary coverage.
Risks of Choosing Lower Limits
Choosing lower limits or opting out can leave you with significant out-of-pocket costs if you require long-term care or have injuries that exceed your health insurance’s coverage limits. Key risks include:
- Catastrophic injury costs can easily exceed lower coverage caps
- Health insurance may not cover all auto-accident-related expenses
- Long-term rehabilitation and in-home care costs can be substantial
Questions about your coverage?
Choosing the right PIP level depends on your health coverage, household needs, and risk tolerance. We’re here to walk you through your options — no jargon, no pressure.
Mercer Agency • 313-884-2695 • www.merceragencygp.com
