Understanding Michigan No-Fault PIP: Protect Your Family, Not Just Your Wallet

When an auto accident happens, medical bills, wage loss, and long-term care needs can pile up fast. In Michigan, Personal Protection Insurance (PIP), often called “No-Fault” benefits, is the first line of defense. But not all PIP choices are created equal. Choosing the cheapest policy may see like the smart choice, but that gamble can leave you and your family at risk. 

Here is what you need to know about how Michigan’s PIP system works today and practical steps to choose coverage and an insurer that actually protects you.

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What PIP (Personal Protection Insurance) actually covers

PIP can provide payment for certain allowable medical expenses, attendant care, replacement services, and a portion of lost wages after a motor-vehicle crash, regardless of who caused the crash. PIP benefits are typically paid by your own auto insurer first, so you don’t have to sue the at-fault driver to get those benefits.

It is important to keep in mind that this area of law is nuanced and time-sensitive, so it is critical that you speak with a knowledgeable attorney as soon as possible to protect your rights.

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The major change you need to know: the 2019 reforms

Michigan’s No-Fault law was changed in 2019. Before that reform, most people effectively had lifetime, unlimited medical (PIP) benefits for serious injuries. The 2019 law created specific PIP options you can choose at the time you buy or renew your policy, including the ability to keep lifetime/unlimited medical PIP, or to select dollar-capped options (for example, $250,000 or $500,000) and a limited $50,000 option in narrow situations. Failing to pick lifetime/unlimited coverage directly affects how long and how much your insurance will pay for allowable medical care after a crash.

In other words, Michigan law now allows you to choose less expensive, capped medical coverage; and that choice can leave you responsible for costs that exceed your selected cap.

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Why the cheapest option often isn’t cheap in real life

Medical and attendant-care costs can be enormous. Lifetime costs for serious injuries, like a traumatic brain injury or a catastrophic spinal cord injury, can easily exceed $1,000,000. Choosing a low cap can mean exhausting your PIP, then paying out of pocket or relying on your health insurance. Of course, if you don’t have adequate health insurance, a low PIP cap can leave you personally responsible for medical costs beyond the PIP cap.

Out-of-pocket liability, dependence on Medicaid (if eligible), or long delays while disputing further coverage are exactly the kind of financial and emotional strain PIP was meant to prevent. Choosing a higher or unlimited PIP level could avoid that exposure. 

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How to choose the right PIP coverage (practical checklist)

1. Prioritize lifetime/unlimited (no cap) medical PIP if you can. For catastrophic injury protection, unlimited/lifetime PIP remains the safest choice as it protects you and your family from personal exposure.
2. If you choose a capped option, understand the exact dollar limit and who it covers. Know whether the limit applies per person, per policy, or as a family aggregate, and whether it affects attendant care, rehabilitation, and wage loss. Ask your insurance agent for the written policy language.  
3. Match PIP to your health insurance situation. It is critical to understand the terms of your health insurance and how it relates to Michigan No-Fault PIP coverage.  
4. Consider your household.  PIP covers family members living with you, so make sure your coverage protects everyone in your household.
5. Ask about attendant care and long-term supports. Some injuries require in-home care or facility care for years. Confirm whether your chosen PIP option will cover attendant care and home modifications, and for how long. 

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Don’t just look at price – look at the insurer

Price shopping is normal, but insurance practices matter as much as price. Because some insurance companies are known to aggressively deny, delay, or litigate claims it is important to do your due diligence. The Michigan Department of Insurance and Financial Services (“DIFS”) has consumer resources, public complaint data, and guidance you can review. Read recent decisions or news about the company’s no-fault handling. If an insurer’s pattern of denials or litigation shows up in court dockets or press, factor that into your choice.  

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If you’re injured: quick priorities

1. Notify your insurance company and get your PIP benefits started. 
2. Keep complete records of your medical bills, provider statements, copies of policy language, and communications with your insurer.
3. Contact Steinberg Goodman Law PLLC right away to protect your rights. 

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Our recommendation 

We advise most Michigan drivers to strongly consider keeping lifetime/unlimited medical PIP when it’s financially possible. If you must choose a capped option, get clear, written answers about what’s covered and how caps apply. Finally, don’t pick an insurance company based on the lowest price alone; reputation for honest, timely claims handling matters when your recovery and family’s future are at stake. 

When it comes to Michigan No-Fault insurance, the choices you make today can shape your family’s future after a crash. Cutting corners on PIP coverage or trusting the wrong insurer may save a few dollars now, but it can cost everything when you need care the most. 

At Steinberg Goodman Law PLLC, we help Michigan families understand their options, stand up to bad insurance practices, and secure the benefits they are entitled to under the law. If you or a loved one has been injured in a car accident, call us today at (248) 538-1494 or visit www.steinberg-goodmanlaw.com to schedule a free consultation. 

We Tip the Scales and Fight for Every Dollar You Deserve.