Yes, personal injury protection (PIP) is required in Michigan. Drivers in Michigan are usually required to have at least $250,000 of PIP coverage for medical expenses, though there are some exceptions for drivers with Medicare or Medicaid.
For instance, policyholders with Medicare Parts A and B can opt out of PIP insurance if the other members of their household have their own auto insurance or health insurance that covers auto accidents. Similarly, drivers with Medicaid can purchase $50,000 in PIP if their household members have another auto or health insurance policy that covers crashes.
Personal injury protection helps ensure that everyone on the road in Michigan has some financial assistance for medical expenses in the event of a collision. Drivers in no-fault states are required to have PIP because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.
Car insurance is so expensive in Michigan because the state has the highest minimum coverage requirements in the country. Michigan is also a no-fault state, meaning that drivers are required to purchase personal injury protection (PIP) to pay for injuries after a crash, regardless of who was responsible. While this is not unusual in a no-fault state, Michigan’s PIP requirements are particularly high. Most policyholders will need at least $250,000 in PIP, and drivers even have the option to purchase unlimited PIP.… read full answer
Michigan car insurance also is expensive because drivers with high PIP limits need to pay a fee to the Michigan Catastrophic Claim Association (MCCA), which covers the cost of PIP claims beyond a certain threshold. Since Michigan’s 2020 auto insurance reforms, however, only drivers who choose unlimited PIP need to pay an MCCA fee.
Finally, the high cost of insurance in Michigan has made coverage unaffordable for many drivers. Roughly 1 in 5 drivers in the state is uninsured, according to the Insurance Information Institute. Fewer insured drivers to pay premiums drives up rates for those who are paying. Similarly, a high rate of insurance fraud, fueled by Michigan’s generous benefits, has pushed premiums higher still. Studies show that 8%-10% of all claims in Michigan are fraudulent.
To summarize, high required coverage limits, fraud, and a large proportion of uninsured motorists have made Michigan one of the most expensive states for car insurance.
The difference between bodily injury and personal injury coverage in car insurance is that personal injury protection pays for the policyholder’s own medical bills, while bodily injury coverage pays for others’ medical bills when the policyholder is at-fault. Bodily injury coverage is a form of liability insurance. It is required in almost every state, but only 13 states require personal injury protection (PIP). It’s also worth noting that bodily injury coverage does not have a … read full answerdeductible, while PIP generally does.
Bodily Injury vs. Personal Injury Car Insurance
Personal Injury Protection
Bodily Injury Coverage
Injuries to the Policyholder
Injuries Caused by the Policyholder
Required in Most States?
Since PIP applies to the policyholder, their passengers, and their household members regardless of fault, it is often referred to as no-fault insurance. It is required in states with no-fault laws, where drivers must file claims for minor injuries with their own PIP insurance rather than with the at-fault driver’s bodily injury liability coverage.
Yes, Michigan is a no-fault state for car insurance. In the event of an auto accident, a Michigan driver’s no-fault personal injury protection (PIP) insurance pays for his or her own medical expenses, lost wages and at-home services like cleaning or laundry. It does not matter who caused the accident, unlike in fault states, where the at-fault driver must pay for the other party’s expenses.… read full answer
Michigan drivers generally need to carry at least $250,000 in PIP insurance, though there are certain exceptions for drivers with Medicaid or Medicare. In addition to PIP, Michigan drivers are required by law to carry bodily injury liability insurance of at least $50,000 per person ($100,000 per accident), plus $10,000 for property damage in another state. Lastly, Michigan drivers need at least $1,000,000 in property protection insurance, which covers damage to other people’s property (except for moving vehicles) after an accident within the state.
Michigan Restrictions on Car Accident Lawsuits
Each no-fault state has its own rules for when you can sue an at-fault driver after an accident. Currently, Michigan is one of the strictest no-fault states in the country, only allowing you to sue the at-fault driver under very limited circumstances.
When You Can Sue:
If the accident is in Michigan and causes death, serious injury, or permanent disfigurement
If a Michigan driver is involved in an accident in another state
If a Michigan driver is in an accident within the state involving a non-resident driving a car not registered in Michigan
If the at-fault driver is sued, their liability policy will pay up to its limits. If the court awards more than their limits, they will be personally responsible for paying the amount not covered.
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