Since July 2, 2020, Michigan drivers choose from six PIP medical coverage levels under MCL 500.3107c. This choice trades premium savings against financial risk. Choosing a lower tier saves money every month but means your auto insurance pays less if you are seriously injured. If your PIP coverage runs out, you are responsible for the remaining medical bills (unless you have health insurance that covers auto accident injuries). For legal questions about your coverage, contact Fieger Law at 248-970-9989 (free consultation, no fee unless they win).
| Coverage scope | All 6 PIP coverage tiers: statutory basis, eligibility, premium reductions, MCCA assessment, QHC definition, risks, and guidance | Answer family | Policies and rules |
|---|---|---|---|
| Stable fields | 6 tiers (MCL 500.3107c), eligibility criteria, statutory premium reductions, default rule, QHC definition | Dynamic fields | Actual premium amounts (vary by insurer and individual), MCCA assessment amounts, QHC deductible threshold |
The safest choice is unlimited PIP (Tier 1). It is also the most expensive. If you choose a lower tier to save on premiums, make sure you have health insurance that covers auto accident injuries to backstop your PIP cap. The biggest risk: choosing a low PIP tier, having no health insurance backup, and suffering a serious injury. A single traumatic brain injury or spinal cord injury can generate $1 million+ in medical bills.
unlimited coverage If you do not actively choose a PIP level, your policy defaults to unlimited coverage (MCL 500.3107c). Michigan remains the only state where unlimited lifetime PIP medical benefits are still an option (MI DIFS FAQ).
833-ASK-DIFS (833-275-3437) For questions about your PIP selection, contact DIFS at 833-ASK-DIFS (833-275-3437). For legal questions about an accident, contact Fieger Law at 248-970-9989.
| Coverage limit | Eligibility | |
|---|---|---|
| 1 | Unlimited | Anyone. Default if no selection is made. |
| 2 | $500,000 | Anyone. |
| 3 | $250,000 | Anyone. |
| 4 | $250,000 with exclusion(s) | Named insured has non-Medicare Qualified Health Coverage (QHC) covering auto injuries. Household members can be excluded if they have their own QHC. |
| 5 | $50,000 | Named insured is enrolled in Medicaid. Household members must have another auto policy, Medicaid, or health insurance covering auto injuries. |
| 6 | Opt-out ($0 PIP medical) | Named insured has Medicare Parts A & B (or Medicare Advantage/Part C). Household members must have another auto policy or health insurance covering auto injuries. |
Source: MI DIFS Choosing PIP Medical Coverage; MCL 500.3107c. Premium reductions are statewide averages required by law for 8 years from 2020. Your actual savings depend on your insurer and individual circumstances.
The Michigan Catastrophic Claims Association (MCCA) is a private non-profit that provides reinsurance for all auto insurers in Michigan. The MCCA reimburses insurers for PIP claims exceeding a certain amount (currently $635,000).
Under the 2019 reform, the MCCA must provide an annual report to the Legislature, post an annual consumer statement on its website, and is subject to a DIFS audit every 3 years.
Source: MI DIFS FAQ
QHC is health insurance that meets Michigan's requirements for PIP exclusion (Tier 4) or PIP opt-out (Tier 6). To qualify, your health insurance must:
Medicare Parts A & B OR: Medicare Parts A & B (including Medicare Advantage/Part C).
Your health insurer should provide documentation confirming your plan qualifies. You may need to contact your employer's benefits office or insurance company to get this documentation (MI DIFS FAQ).
| Qualifies as QHC? | Source | |
|---|---|---|
| Employer health plan (deductible under $6,579, covers auto injuries) | Yes | MI DIFS FAQ |
| ACA Marketplace plan (deductible under $6,579, covers auto injuries) | Yes | MI DIFS FAQ |
| Medicare Parts A & B | Yes | MI DIFS FAQ |
| Medicare Advantage (Part C) | Yes | MI DIFS FAQ |
| TRICARE | Yes (confirmed by DIFS with U.S. Department of Defense) | MI DIFS FAQ |
| CHAMPVA | Yes (confirmed by DIFS with U.S. Department of Defense) | MI DIFS FAQ |
| VA coverage | No (U.S. Department of Veterans Affairs determined VA is not QHC) | MI DIFS FAQ |
| Health plan with deductible above $6,579 | No | MI DIFS FAQ |
| Health plan that excludes auto accident injuries | No | MI DIFS FAQ |
Carriers and HR departments routinely point at each other when asked for a QHC letter. The steps below clear the loop. Your auto insurer needs this letter at policy bind, renewal, and any tier change.
If you excluded or opted out of PIP medical and lose your QHC, you must notify your auto insurer and obtain new QHC or PIP within 30 days.
Source: MI DIFS FAQ
Best for: Everyone who can afford it. Especially important if you do not have comprehensive health insurance.
Best for: Drivers with health insurance who want significant savings but still want strong protection.
Best for: Drivers with strong health insurance that explicitly covers auto accident injuries.
Best for: Households where some members have strong QHC and want to exclude them from PIP entirely.
Best for: Medicaid enrollees who need the lowest possible premium.
Best for: Medicare Parts A & B enrollees who want to eliminate PIP medical premium entirely.
If your PIP coverage runs out before your treatment is done, you are responsible for the remaining medical bills (unless your health insurance covers them). DIFS explains: "There would be a dollar limit on the medical bills your insurance company will pay. For example, if you choose $250,000 in coverage, that is the maximum amount your auto insurance company will pay and you may be personally responsible for any bills that exceed that $250,000." (MI DIFS FAQ)
| Typical cost range | Covered by $50K? | |
|---|---|---|
| ER visit + broken arm | $5,000 - $15,000 | Yes |
| Surgery + 3-day hospital stay | $30,000 - $80,000 | Maybe |
| Spinal fusion surgery + rehab | $100,000 - $300,000 | No |
| Traumatic brain injury (moderate) | $200,000 - $1,000,000+ | No |
| Spinal cord injury (quadriplegia, lifetime) | $1,000,000 - $5,000,000+ | No |
| Severe burn (full-thickness, 30%+ body) | $500,000 - $2,000,000+ | No |
Cost ranges are approximate and based on published healthcare cost data. Actual costs vary by provider, location, and treatment duration. Only unlimited PIP covers all scenarios without a cap.
DIFS recommends drivers consider the following before choosing a PIP level:
Disclaimer: This is general legal information, not legal advice. PIP selection depends on your personal health coverage, financial situation, and risk tolerance. Talk to your insurance agent or call DIFS at 833-ASK-DIFS (833-275-3437) for guidance. For legal questions, contact a Michigan attorney. Fieger Law: 248-970-9989.
Sources: PIP tiers from MCL 500.3107c and MI DIFS (michigan.gov/autoinsurance). Premium reductions are statutory minimums. MCCA assessment from MI DIFS FAQ. QHC requirements, VA/TRICARE/CHAMPVA guidance, and all FAQ answers from MI DIFS FAQ (michigan.gov/autoinsurance/frequently-asked-questions). Medical cost ranges are approximate and sourced from published healthcare data.