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If you’re a driver in Michigan, you may have noticed that you’re subscribed to personal injury protection (PIP) coverage as denoted in the declarations section of your car insurance policy. PIP insurance is mandatory in Michigan, as it is in many other states. So, what exactly is PIP, and how does PIP insurance in Michigan work? Read on to find out what PIP insurance Michigan is all about.
What Is PIP Insurance?
PIP insurance, also known as personal protection insurance or personal injury protection, is coverage offered to auto accident claimants under the No-Fault Statute. The victim’s own insurance company reimburses them, regardless of whether the recipient was to blame. Anyone who drives a car in Michigan is required to carry PIP benefits coverage on their vehicles.
PIP insurance helps victims get the medical attention and treatment they need to recover by covering their accident-related medical costs. This type of coverage also compensates victims and their families for earnings lost because of crippling injuries.
There are a few points to bear in mind with PIP coverage in Michigan. First, PIP insurance in Michigan is obligatory for all motorists and can be used regardless of who is to blame for an accident. Also, PIP may pay for hospital bills for the driver and the occupants. Lastly, the PIP policy’s cost is influenced by a number of factors, not least of all the medical policy alternatives you choose.
What Are Michigan’s PIP Benefits?
The following are some benefits that will enable you to recover from your accident-related injuries:
PIP insurance in Michigan reimburses injured parties for hospital expenses and fees incurred because of the accident up to the dollar figure of the No-Fault PIP medical coverage level set in the car insurance policy under which you are pursuing PIP compensation. Prior to July 1, 2020, all insurance provided unlimited medical coverage. For insurance issued or renewed after July 1, 2020, however, policyholders can choose different levels of coverage.
Travel costs incurred to and from doctor visits at specialists’ offices, hospitals, and rehabilitation and physiotherapy clinics are covered by PIP coverage. If you don’t drive, PIP insurance coverage will pay for public transit.
If you cannot return to work because of car accident-related impairments, your PIP coverage will refund you for the earnings you have lost. Compensation for lost earnings is payable for three years from the date of the accident. Payments are based on 85% of your earnings since these payouts are not taxable.
In the first year after your vehicle accident, PIP insurance pays up to $20 each day to anyone who helps you with tasks you can no longer perform because of your accident-related injuries. Some common replacement services that PIP insurance covers include:
- Yard and lawn care
- Vehicle maintenance
- Snow shoveling
- Meal preparation
If your vehicle-accident-related impairments necessitate attendant care, PIP insurance covers these expenses. Attendant care supports auto accident survivors with daily living activities they can no longer perform on their own, attributable to their injuries and restrictions caused by the accident. Coverage is available for both around-the-clock care and on an as-needed basis. Example of attendant care services includes:
- Regular monitoring
- Administering medicine
- Personal hygiene
- Personal care
- Support using the restroom
- Driving the patient
- Retrieving items for the patient
- Moving heavy items for the patient
- Wound care
A family member or a nurse hired through a commercial entity can administer the service in your residence. The coverage will also pay for attendant care in a nursing home.
If the insured individual dies in an auto accident, PIP covers up to $5,000 of funeral and burial costs.
Survivors’ Loss Benefits
Dependents of the insured are also eligible for work-loss compensation, which is limited to 85% of the policyholder’s regular earnings or up to $5,398 a week.
Property Protection Insurance (PPI)
In Michigan, motorists must also get Property Protection Insurance (PPI). PPI compensates people if your car damages a structure, fence, wall, or parked car. For the overall policy, the statutory cap is $1 million. The circumstances of your accident, as well as the nature and magnitude of your losses, determine your eligibility for these benefits.
How Much Does PIP Insurance Cost in Michigan?
In Michigan, the cost of PIP insurance, which accounts for about 35% of the cost of your overall vehicle insurance payment, is driven by many factors, including:
- The level of health insurance you pick
- Whether you coordinate coverage
- Whether you choose a co-payment
- Your driving record
- Other drivers on the policy
- Your age
- Your income
Legislation enacted in 2020 forced car insurance companies to lower PIP premiums over the next eight years. If you have an unrestricted PIP policy as part of your coverage in Michigan, for example, you will save around 10% or more on your rate per insured vehicle. If you’re insured for at least $50,000 in PIP policy, your percentage decrease per insured car will be at least 45%.
How Do You Claim PIP Benefits?
If you are involved in a vehicle accident, you need to apply for Michigan PIP claims with the respective car insurance company within one year of the date of the accident. Failure to file within this time limit may cause you to lose your insurance benefits.
When Are PIP Benefits Paid?
After submitting verifiable evidence of the claims, your car insurance company is required to pay your PIP claims within 30 days. If you have an outstanding medical charge and don’t report it to your carrier within 90 days of receiving care or treatment, the insurance company is granted an additional 60 days to make payment.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.