How Much PIP Coverage Should You Have? | Michigan Auto Insurance

If you’re looking into your auto insurance in Michigan, one of the most important questions you’ll face is: how much Personal Injury Protection (PIP) coverage should you choose? Since Michigan’s auto insurance reform in 2020, drivers now have more options, which can create confusion about what’s best for you and your family.

What Is PIP Coverage?

PIP coverage, or Personal Injury Protection, is a core part of Michigan auto insurance. It pays for medical expenses and related costs if you or your household family members are injured in a car accident—no matter who is at fault.

This protection even follows your household members when they’re passengers in someone else’s vehicle or if they’re injured as pedestrians. In other words, PIP is one of the broadest and most valuable coverages you can carry.

Michigan’s PIP Coverage Options

Under Michigan law, drivers can select from several PIP options depending on their health insurance status:

Unlimited PIP (the traditional standard)
$500,000 limit
$250,000 limit
Lower options in certain cases if you are on Medicaid or Medicare

These choices were introduced during Michigan’s 2020 auto insurance reform, aimed at lowering premiums. However, with more options comes more responsibility to choose wisely.

Why Unlimited PIP Is the Safest Choice

While the lower PIP options may look attractive from a cost standpoint, they carry significant risk. Serious accidents can quickly generate hundreds of thousands—or even millions—of dollars in medical bills, rehabilitation costs, and long-term care needs.

In Michigan, the PIP Coverage on your auto insurance, not your health insurance, covers long-term care, rehabilitation, or in-home care after an auto accident, which can be critical after a major accident. That’s where Unlimited PIP stands out—it covers these expenses fully, without the worry of reaching a limit.

Protecting Your Family Members

It’s also worth stressing that PIP extends to all members of your household. If your spouse or children are injured in another car, Unlimited PIP ensures their expenses are still covered. That peace of mind is hard to put a price on.

The Bottom Line

While Michigan’s auto insurance reform created new ways to lower costs, cutting corners on PIP coverage can leave you financially exposed. Unlimited PIP provides the most comprehensive protection available—especially for families.

If you want the peace of mind that no matter what happens, your medical expenses will be covered, Unlimited PIP is the choice I recommend every time.

Next Step: Before making a decision, talk with an experienced Michigan insurance agent who can review your options, explain how PIP interacts with your health insurance, and make sure you and your family are fully protected.

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