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Michigan PIP Reform


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Michigan PIP Reform


Changes are coming next June for Michigan auto insurance. The hopes are to lower auto insurance rates in the state, which currently are the highest in the nation. This is due in part to our unique medical coverage for auto accidents. We offer medical coverage for auto accidents “for as long as medically necessary”), colloquially known as “unlimited medical”. This coverage cannot be opted out of and can only be reduced slightly by a medical deductible or as excess insurance (you must have a health insurance policy that will be primary in an auto accident in order to do this).

A recent bulletin from one of our insurance carriers reveals a little of what the changes to the no-fault law will mean as far as auto insurance medical coverage:

– Named Insureds, their spouses, & any resident relatives (which includes college students who are away at school but live with the Named Insured) will only be covered for PIP.

– Non-relatives are not covered for PIP even though they may be listed as a driver.

In both cases, non-resident relatives & non-relatives will need to purchase their own auto insurance policy. If they do not have a vehicle, they can purchase a non-owned auto policy that will cover them for liability & medical. Otherwise they can claim up to $250,000 in PIP coverage through the Michigan Assigned Claims Plan.

– Occupants & non-occupants who are uninsured (not eligible for coverage from a spouse/resident relative) will have to pursue PIP coverage through MACP.

– Occupants of employer-provided vehicles will pursue PIP coverage through their employer’s vehicle insurance first, then their own/spouse’s/resident relative’s personal auto policy, and finally the MACP if no coverage is available.

– Occupants of transportation company vehicles will pursue PIP coverage through the transportation company unless specifically excluded. Then their own/spouse’s/resident relative’s personal auto policy, and finally the MACP if no coverage is available.

– Motorcyclists will pursue PIP coverage as before.

– Out-of-state residents will receive the same coverage as the personal auto policy coverage listed. Unless the owner of the vehicle is registered/insured in the state of Michigan.


Think hard about your coverage in the coming year. Choosing a lower limit or opting out completely may give you a cheaper rate, but keep in mind that your health insurance has annual deductibles/co-pays and has a lifetime benefit cap…



Contact Us!

At M. Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!




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