Michigan requires three coverages on every auto policy: personal injury protection, property protection insurance, and residual bodily injury and property damage liability. The default liability limits are $250,000 per person and $500,000 per accident. You may choose limits as low as $50,000 and $100,000, plus $10,000 for property damage in another state.

What coverages does Michigan law require?

The state's official auto insurance site, Michigan.gov/AutoInsurance, lists three basic coverages that must be purchased and carried on every vehicle:

• Personal injury protection, or PIP. This is the medical and related no-fault coverage that pays allowable expenses if you are injured in an auto accident. You have to choose a PIP medical level, which is covered in more detail in a companion guide.
• Property protection insurance, or PPI. This pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences. It also pays for damage to another person's properly parked vehicle. It does not pay for any other damage to cars.
• Residual bodily injury and property damage liability, or BI/PD. This pays if you are held legally responsible for another person's death, bodily injury, or damaged property. That includes serious injury, pain and suffering, medical costs above the injured person's policy limits, and crashes outside Michigan or with an out-of-state driver.

Security for those benefits has to be in effect when the vehicle is driven or moved on a highway. A Michigan-registered vehicle needs a Michigan no-fault policy, not an out-of-state policy, when you title or register it here.

What are the default liability limits, and how low can you go?

After the 2020 reforms, the default BI/PD limits are:

• Up to $250,000 for one person who is hurt or killed in an accident.
• Up to $500,000 for each accident if several people are hurt or killed.
• Up to $10,000 for property damage in another state.

You can buy other limits, but the lowest you may purchase is $50,000 per person and $100,000 per accident, still with $10,000 for out-of-state property damage. To take those lower limits, you have to complete a form that acknowledges the choice. If you don't make a selection, the policy is issued with the default limits.

Those numbers are higher than the old 20/40 minimums that applied before July 2, 2020. If your declarations page still looks unfamiliar, compare it with the current defaults and ask your agent which limits you actually have.

Does required coverage pay to fix your own car?

Usually no. PPI does not pay for damage to moving cars, only for certain Michigan property and for a properly parked vehicle. Collision and comprehensive are optional, unless a lender requires them.

• Collision pays to repair your car after a crash, minus your deductible.
• Comprehensive pays for theft, vandalism, hitting a deer, fire, flood, or a falling object.

If you're comparing quotes, look at liability and PIP first, then decide whether collision and comprehensive are worth the premium on your car. An older car you own outright may not need them. A financed car almost always does.

How should you read your declarations page?

Pull the first page of the policy or the PDF in your insurer's app and check:

• The PIP medical option that was issued.
• Bodily injury liability, written as two numbers, such as 250/500 or 50/100.
• The $10,000 out-of-state property damage limit.
• Whether collision and comprehensive are listed, and the deductibles.
• The policy period, so you know when it renews.

If you're switching companies, start the new policy before the old one ends. Michigan treats driving without the required no-fault coverages as a serious problem, and a gap can leave you uninsured on the day you get stopped or have a crash.

A crash on I-75 or I-94 can produce medical bills and liability claims that run past a low limit quickly, especially if more than one person is hurt. That's why the default is 250/500, and why many people still buy higher limits or an umbrella policy if they have a house or savings. Get quotes at two or three liability levels so you can see what the extra protection actually costs, instead of guessing.

If you use the car only in summer, or you store it, ask your agent what the law requires while the vehicle is off the road. The Insurance Code says the required security has to be in effect when the vehicle is driven or moved on a highway, and there are limited ways to drop parts of the coverage on a vehicle that isn't being driven. Don't cancel a policy on a registered car and assume the plate can stay on it.

FAQ

What auto insurance is required in Michigan?

Personal injury protection, property protection insurance, and residual bodily injury and property damage liability. Those three have to be on every vehicle policy.

What is the minimum liability coverage I can buy?

$50,000 per person and $100,000 per accident in bodily injury liability, plus $10,000 for property damage in another state. The default limits are 250/500 if you don't choose lower limits on the required form.

What does property protection insurance pay for?

Up to $1 million for damage your car does in Michigan to other people's property, such as buildings, fences, and another person's properly parked vehicle. It does not pay for other damage to cars.

Does a required Michigan policy fix my car after a crash?

Not usually. You need collision coverage for that, unless the other vehicle was properly parked and PPI applies. Comprehensive is the coverage for theft, hail, deer, and similar losses.

Next step

Before your next renewal, sit down with a licensed local agent and compare quotes at the default 250/500 limits and at 50/100. Ask how your PIP medical choice and any collision deductibles change the premium, and make sure the policy you take to the Secretary of State is a Michigan no-fault policy.

Sources: Michigan.gov/AutoInsurance, frequently asked questions; Michigan.gov/AutoInsurance, choosing bodily injury coverage; MCL 500.3009, automobile liability limits.

If a Michigan insurer denies or drops your personal auto or homeowners policy, or the premium doesn't match approved rates, the Essential Insurance Act sets a formal complaint path. It starts with a company conference, then a DIFS review, then a formal appeal. Claim disputes use a different DIFS process.

What complaints does the Act cover?

Chapter 21 of the Insurance Code created this process for a defined set of problems. DIFS says a complaint under the Act involves:

• The denial of auto or homeowners insurance.
• The termination of auto or homeowners insurance.
• A premium for auto or homeowners insurance that is inconsistent with the rates approved by DIFS.

It applies to personal auto or homeowners policies issued on a non-group, individual basis. Whether a policy is group or non-group depends on how the company filed its rates. If you file, DIFS will determine whether your policy is subject to the law.

The Act does not cover every insurance disagreement. Claim disputes, including a fight over a repair estimate or a total-loss offer, go through DIFS's regular complaint process, not this one. If you're not sure which door to use, file anyway and ask the Department to point you to the right review.

What are the three steps?

DIFS describes the process this way:

1. An informal managerial-level conference with the insurance company. Ask the company, in writing, for that conference. Keep a copy of the denial or termination letter, your application or declarations page, and notes from any phone calls. The conference is your chance to have a manager explain the underwriting or rating decision and to correct errors, such as a wrong driving record or an old claim that isn't yours.
2. A review and determination by DIFS. If the conference doesn't resolve it, you can ask DIFS to review the decision. The Department looks at whether the company followed the law and its filed rates and underwriting rules.
3. A formal appeal. If you still disagree with the determination, a formal appeal process is available.

Deadlines can be short, so don't sit on a denial letter. Put the request for a conference in writing as soon as you can, and ask the company to confirm the date.

What should you bring, and what can you ask for?

Useful documents include:

• The written denial, nonrenewal, or cancellation notice, including the reason the company gave.
• Your application, declarations page, and any inspection or credit-based insurance score notice.
• Proof of a Michigan driver's license or vehicle registration, if the denial is for auto insurance.
• A timeline of when you applied, when you were told no, and whom you spoke with.

Ask the company to put the eligibility reason in writing if you only got a verbal "we don't write in that area" or "we're not taking new customers." DIFS has warned that those kinds of statements can be a problem, and the Department's consumer line is 877-999-6442.

If the issue is the premium, ask the company to show you how the approved rate and any discounts or surcharges were applied to your policy. A typo in a garaging ZIP code or a vehicle use class can change the price.

What if you still need coverage while the complaint is pending?

A complaint does not automatically keep a canceled policy in force. If you're close to a termination date, talk with another licensed agent the same week. For homeowners, the Michigan Basic Property Insurance Association may be a last-resort market. For auto, the Michigan Automobile Insurance Placement Facility exists for people who have trouble finding a policy. You can use those markets and still pursue the Essential Insurance Act review.

Eligible Michigan residents are supposed to be able to get auto and homeowners insurance, subject to the rules in the Act and the company's lawful underwriting. "You live in the wrong ZIP code" is not a reason to give up.

Keep every letter and email in one folder, including your request for the conference and the company's written response. If you later file with DIFS, that file is what the Department will review. A clean timeline is more useful than a long recap of how frustrating the calls were.

You can also ask DIFS to confirm that the agent and the company are licensed. Only work with a licensed insurer. If someone offers a policy that "isn't filed in Michigan" or wants cash outside the usual channels, stop and call the Department before you pay.

FAQ

Does the Essential Insurance Act cover a fight over a claim payment?

No. DIFS says claim disputes are reviewed through its normal complaint process, not the Essential Insurance Act path.

Do I have to talk to the company before I go to DIFS?

Yes. The first step is an informal managerial-level conference with the insurer. Then you can ask DIFS for a review and determination.

Does this apply to a policy I got through work or an association?

Only personal auto or homeowners policies issued on a non-group basis are covered. DIFS decides that from the company's rate filing, so ask if you're unsure.

Can I get a last-resort policy while I appeal?

Yes. A complaint doesn't replace the need for coverage. Ask an agent about the FAIR Plan for a home or the Michigan Automobile Insurance Placement Facility for a car.

Next step

If your auto or homeowners policy was denied, dropped, or priced in a way that doesn't match the approved rate, request a managerial conference in writing and call a licensed local agent about temporary coverage. If the conference doesn't fix it, file with DIFS at 877-999-6442.

Sources: DIFS, Essential Insurance Act complaint process; Michigan.gov/AutoInsurance, frequently asked questions.

A standard Michigan homeowners policy does not cover flood damage. If you want that protection, you have to buy a separate flood policy, through the National Flood Insurance Program or a private insurer. Most NFIP policies have a 30-day waiting period, so buying coverage when a river is already rising is often too late.

Why doesn't homeowners insurance pay for a flood?

Homeowners insurance is built to cover risks like fire, theft, and certain kinds of wind or hail, subject to your deductibles and exclusions. Flood is treated as a separate peril. The Department of Insurance and Financial Services tells Michigan consumers that a standard homeowners policy does not cover flood, and that separate flood insurance is available through NFIP or private companies.

That matters in Michigan even if you don't live on the Lake Michigan shoreline. Ice jams, heavy rain, overflowing creeks, and sewer-related flooding after a storm can put water into basements and first floors well inland, including in metro Detroit, Grand Rapids, and along inland rivers. A lender may require flood insurance if the home is in a mapped high-risk zone. If it isn't, the requirement may not apply, but the water risk can still be real.

Don't assume a "flood" endorsement is already hiding on your homeowners declarations page. Ask the agent directly, and get the answer in writing if you're not sure.

How long is the waiting period, and what does NFIP cover?

Most NFIP policies have a 30-day waiting period before coverage starts. There are exceptions, including some purchases made in connection with a loan, but you shouldn't count on an exception unless your agent or the program confirms it in writing.

A typical NFIP homeowners policy can insure the building and, separately, the contents. Official FloodSmart guidance says building coverage for a home can go up to $250,000, and contents coverage up to $100,000. Those two limits are chosen separately, and contents coverage is not automatic just because you insured the building.

Building coverage can include the structure and certain built-in items, such as electrical and plumbing systems, furnaces, water heaters, and permanently installed cabinets. Contents coverage can include furniture, clothing, and electronics kept inside the home.

NFIP policies also leave things out. They generally do not cover:

• Temporary housing and additional living expenses while the house is repaired.
• Cars and most self-propelled vehicles.
• Personal property kept in basements, in many cases.
• Property outside the insured building, such as decks, fences, and landscaping.
• Currency and certain valuable papers.

If your house would cost more than $250,000 to rebuild, or you need living-expense coverage after a flood, ask about a private flood policy or excess coverage. DIFS has published a list of private flood insurers writing in Michigan.

How should you decide whether to buy it?

Start with your flood zone and your actual risk, not only the lender's requirement:

• Look up the address on FEMA's flood map and ask a floodplain official or your agent what the zone means.
• Think about nearby creeks, rivers, drains, and, in some neighborhoods, historical basement flooding after heavy rain.
• Ask what it would cost to replace flooring, drywall, a furnace, and a water heater after a few feet of water.
• Compare an NFIP quote with any private flood quote, including deductibles, waiting periods, and living-expense coverage.

A policy that costs a few hundred or a few thousand dollars a year is easier to judge once you've priced a single interior rebuild. Don't wait for a spring thaw or a named storm to start that math.

Sewer backup and sump-pump overflow can also be excluded from a standard homeowners policy, and they are not the same as an NFIP flood. Some companies sell a sewer-backup endorsement. Ask what's covered if a drain backs up after a heavy rain, and don't assume a flood policy will pay that claim automatically. The two products overlap in some storms and leave gaps in others.

If you rent, you can still buy contents-only flood coverage. A landlord's policy, if there is one, usually does not replace your furniture or clothing. Get your own declarations page so you know what, if anything, is already in force.

FAQ

Does a standard Michigan homeowners policy cover flood damage?

No. DIFS says you need separate flood insurance, available through the National Flood Insurance Program or a private insurer.

How long do I have to wait for NFIP coverage to start?

Most NFIP policies have a 30-day waiting period. Some exceptions exist, including certain loan-related purchases. Confirm the start date in writing.

Do I need flood insurance if I'm not in a floodplain?

You may not be required to buy it by a lender, but you can still flood. Inland rivers, ice jams, and heavy rain have flooded Michigan homes outside high-risk zones.

Can I buy more than the NFIP $250,000 building limit?

You may be able to buy private or excess flood coverage. DIFS publishes information on private flood insurers in Michigan. Ask a licensed agent to compare options.

Next step

Ask a licensed local agent to quote a flood policy on your address, including the waiting period and whether contents and additional living expenses are covered. If you live near water or in a mapped flood zone, don't wait for a storm warning to start that conversation.

Sources: DIFS, flood insurance: what you need to know; DIFS, flood disaster preparedness; National Flood Insurance Program, buy a flood insurance policy; DIFS, private flood insurers in Michigan.

If you can't find a Michigan auto policy in the regular market, a licensed agent can apply to the Michigan Automobile Insurance Placement Facility. The Facility, often called MAIPF, was created to offer coverage to people who have difficulty getting a policy through standard companies. It is a last-resort market, not a first quote to try.

When would you use the Placement Facility?

Michigan's auto insurance rules are built so eligible residents can obtain the required no-fault coverages: PIP, property protection, and residual liability. In the regular market, companies still use underwriting rules to decide whom they will write. If you have a difficult driving record, a lapse, or another risk a standard company won't take, you may hear "we're not able to offer you a policy."

DIFS tells consumers that if you are having trouble obtaining auto insurance, you may ask your agent to apply to MAIPF, or you may look for a company that specializes in higher-risk drivers. You should also ask why you were told no. If the reason is vague, or it sounds like "we don't write in that area," you may also have an Essential Insurance Act complaint, which is a separate process.

Do not go without coverage while you sort it out. Driving a vehicle without the required no-fault security is a serious problem in Michigan, and a crash without a policy can leave you personally responsible for injuries and damage.

How does an application work?

You don't usually apply as a walk-in customer at a state office. A licensed Michigan auto insurance agent, appointed by a Michigan auto insurer and registered with the Facility, submits the application. You may be able to choose a servicing carrier. If you don't, MAIPF assigns one under its procedures. You can reject an assignment or ask for a reassignment, following Facility rules.

Bring the same information you would bring for any auto quote:

• Your Michigan driver's license, or an explanation of your current license status.
• Vehicle identification numbers and the garaging address.
• Household drivers and their license information.
• Your driving history and any recent lapses or accidents.

The policy you get still has to include the required Michigan coverages. You will still choose a PIP medical level and residual liability limits, subject to the same legal floors and defaults that apply in the regular market. Ask the agent to walk through those choices on the official forms, just as you would with any other company.

Expect the premium to be higher than a preferred-market quote. That's often why the regular market said no. Still get more than one agent to look at your record, because a specialty company outside the Facility may be cheaper than an assigned risk policy.

What should you watch for?

• Work only with a licensed agent and a licensed insurer. If someone says they can "place" you but can't show a license, call DIFS at 877-999-6442 before you pay.
• A USDOT number or a flashy website is not proof of authority to sell Michigan auto insurance.
• If an agent says you are not eligible and immediately steers you to MAIPF without explaining why, ask for the specific reason in writing. DIFS has flagged that pattern as a concern.
• Keep shopping at renewal. A year of clean driving, or a change in household drivers, may get you back into the regular market.

The Facility is a safety net so you can insure a car you need for work or family, not a permanent assignment you should stop questioning.

Ask the agent to confirm the effective date in writing before you drive the car. If you already have a cancellation date from another company, do not let that date pass uncovered. Bring proof of the new policy to the Secretary of State if you also need to register or title the vehicle, because Michigan requires proof of no-fault insurance for those transactions.

If you later get a regular-market quote that's lower, you can usually move at renewal, or earlier if the contract allows. Read the cancellation terms so you don't pay a short-rate penalty by surprise.

FAQ

What is MAIPF?

The Michigan Automobile Insurance Placement Facility is the state's residual market for auto insurance. It exists to offer coverage to people who have trouble finding a policy in the regular market.

Can I apply to the Facility myself?

Usually you apply through a licensed Michigan auto insurance agent who is set up to submit applications to MAIPF. Ask the agent whether you may choose a servicing carrier.

Is a Placement Facility policy the same required no-fault coverage?

Yes. You still need PIP, property protection, and residual liability, and you still choose PIP medical and liability limits under Michigan law.

If one company turns me down, do I have to use MAIPF?

Not always. Another standard or specialty company may still offer a policy. Use the Facility when you can't find coverage, and ask DIFS for help if a denial looks improper.

Next step

If you've been turned down for Michigan auto insurance, call a licensed local agent, ask for the reason in writing, and, if needed, have the agent submit an application to the Placement Facility. You can also call DIFS at 877-999-6442 if you need help finding a licensed agent or want to question a denial.

Sources: Michigan.gov/AutoInsurance, frequently asked questions; MAIPF, Michigan Automobile Insurance Placement Facility; MCL 500.3365, placement facility; DIFS, Essential Insurance Act complaint process.

If you can't find homeowners insurance in Michigan's regular market, the Michigan Basic Property Insurance Association can be a last-resort option. The Association, often called the FAIR Plan or MBPIA, writes homeowners, renters, condo, dwelling fire, and commercial property coverage for qualified people and qualified property. You generally have to try the regular market first.

What is the Michigan Basic Property Insurance Association?

The Department of Insurance and Financial Services describes MBPIA as a way to provide property insurance to qualified people who cannot get it from authorized insurers. Homeowners coverage is the most common personal policy it issues. DIFS says the Association's policy forms are equivalent to the HO-2 and HO-3 forms used by authorized companies.

Policies are written for one year and can be renewed on qualified property. The pool may also issue a binder, with the right premium, for up to 60 days while remaining conditions are being met.

This is not a bargain shopper's policy and not a special discount plan. It's the state's residual market for people who otherwise may be left uninsured.

Who qualifies, and what property qualifies?

DIFS says you qualify if you own or rent and live in "qualified property." Qualified property means residential property that meets building code standards, is not used for farm or business reasons, and is not used for illegal activities.

The Insurance Code also sets conditions for basic property insurance through the pool. In general, the pool looks for:

• An inspection of the property by the inspection bureau within the preceding six months, unless a renewal inspection is waived under the rules.
• A good-faith, diligent effort to obtain the same type of insurance through established channels in the regular market, from authorized insurers, at a level appropriate to the property.
• No unpaid premium on prior insurance on the property.
• Property that is qualified and an acceptable risk under the pool's standards.

If the pool finds the property is not an acceptable risk, you are entitled to a written statement of what prevents it from qualifying and what would have to be fixed. That letter is useful. It tells you whether a repair, a cleanup, or a different occupancy will open the door.

Your agent can apply for you. Don't assume a "no" from one company is the end of the road, and don't assume the FAIR Plan will write a house that is vacant, in violation of code, or used as a business.

What's the difference between replacement cost and repair cost?

MBPIA offers both, and they are not the same.

• A replacement cost policy is what most people mean by homeowners insurance. It lets you replace, repair, or rebuild the damaged property to its original condition with the same kind and quality of materials. To buy this from MBPIA, you must insure the property for 80% of what it would cost to replace it.
• A repair cost policy lets you repair or rebuild to a condition similar to what it was before the damage, using modern materials. You must buy an amount of insurance equal to what the property is currently worth. DIFS notes that this type of policy generally provides less coverage for about the same cost as a replacement cost policy.

If you're comparing a FAIR Plan quote with a regular-market quote, look at the form type and the amount of insurance, not just the premium. A cheaper repair-cost policy can leave a large gap after a fire.

How does this fit with the Essential Insurance Act?

Michigan also has an Essential Insurance Act process for people who are denied auto or homeowners insurance or who believe they're being charged a premium that doesn't match approved rates. That complaint path is separate from a FAIR Plan application, and it starts with a conference with the company. If you're shopping, you can pursue a regular-market policy, use the complaint process if you were turned down incorrectly, and still apply to MBPIA if you need coverage in place.

The pool has to notify residential policyholders, before renewal, of their rights to obtain home insurance in the regular market and through the pool. If you've been in the FAIR Plan for a while, ask your agent at each renewal whether a standard company will write the house now.

FAQ

Is the Michigan FAIR Plan the same as MBPIA?

Yes. The Michigan Basic Property Insurance Association is the state's FAIR Plan, the residual market for basic property and home insurance.

Do I have to be turned down before I can apply?

You generally have to make a good-faith, diligent effort to get the same type of coverage from authorized insurers in the regular market. Your agent can help document that effort and submit the application.

Can I get a replacement cost homeowners policy from the pool?

Yes, if you qualify. You must buy insurance equal to 80% of replacement cost. The Association also offers a repair cost policy, which generally provides less coverage.

What if the pool says my house is not an acceptable risk?

You're entitled to a written statement of the problems and the steps needed to make the property acceptable. Ask for that in writing and talk with your agent about repairs or a new inspection.

Next step

If you're having trouble finding homeowners insurance, talk with a licensed local agent about a documented search of the regular market and, if needed, an application to the Michigan Basic Property Insurance Association. Ask whether a replacement cost policy is available on your house and what amount of insurance that requires.

Sources: DIFS, The Michigan Basic Property Insurance Association (FIS-PUB 0209); MCL 500.2925, application to the pool for basic property insurance; MCL 500.2925a, application to the pool for home insurance; DIFS, Essential Insurance Act complaint process.

Michigan drivers must choose one of six PIP medical coverage levels when they buy or renew an auto policy. The options run from unlimited coverage to a Medicare opt-out. If you don't make a valid choice, the policy is issued with unlimited PIP medical coverage and you're charged for it.

What do the six PIP medical options pay?

The levels are the most your auto insurer will pay per person per accident for the medical portion of PIP. The official choice page at Michigan.gov/AutoInsurance lists them this way:

• Option 1: Unlimited coverage. There is no cap on allowable PIP medical expenses.
• Option 2: $500,000 per person per accident.
• Option 3: $250,000 per person per accident.
• Option 4: $250,000 with exclusions. This is only available if the named insured who is excluding PIP medical has qualified health coverage that is not Medicare, and any resident relative or spouse who is excluding PIP medical also has qualified health coverage.
• Option 5: $50,000. This is only available if the applicant or named insured is enrolled in Medicaid, and any spouse and all resident relatives have qualified health coverage, are enrolled in Medicaid, or are covered under another auto policy with PIP medical coverage.
• Option 6: No PIP medical coverage. This opt-out is only available if the applicant or named insured has Medicare Parts A and B, and any spouse and all resident relatives have qualified health coverage or are covered under another auto policy with PIP medical coverage.

Options 1, 2, and 3 are available to all drivers. Options 4, 5, and 6 require the health coverage described above, and you have to provide documentation. Insurers and agents are required to give you forms that describe the benefits and risks.

What is qualified health coverage?

For these rules, the health plan has to cover auto accident injuries and must not exclude or limit them. The Department of Insurance and Financial Services also publishes a maximum individual deductible. On the current PIP choice page, that figure is less than $6,579. Confirm the number on the official page when you enroll, because DIFS can update it.

Medicare and Medicaid enrollees may need proof of enrollment. A DIFS Medicaid ID card guide is posted for agents and companies. If your documentation is missing or you don't actually qualify for the option you picked, the policy goes back to the default: unlimited PIP medical.

What is still covered if you opt out of PIP medical?

Wage loss, replacement services, and funeral and burial benefits are still part of the auto policy even if you opt out of or exclude PIP medical coverage. You are only turning off, or limiting, the medical piece, and only for people who qualify for that choice.

If you opt out, excluded people have no PIP medical coverage under that policy. That's why household members have to have other qualifying coverage or another auto policy with PIP medical. A change in health insurance, a move, or a new household member can leave a hole if you don't tell your auto insurer.

How do you choose a level without guessing?

There is no single right answer, but the tradeoff is clear. A lower medical limit can lower the PIP portion of the premium. The law also required companies to make statewide average PIP medical premium reductions for policies issued or renewed after July 1, 2020, with larger average cuts at the lower options. Your own premium still depends on your record, your cars, and your insurer.

Ask yourself, and your agent:

• If someone in the car had a long hospital stay or years of rehabilitation, would $50,000, $250,000, or $500,000 be enough?
• Does your health insurance actually cover auto injuries, and what's the deductible?
• Is everyone in the house accounted for, including a college-age child who still lives with you part of the year?
• If you have Medicare, do you also have Part B, and does every resident relative have other coverage?

Get the choice in writing on the official form, and keep a copy with your policy.

Keep a copy of the selection form with your declarations page. If you get married, add a driver, lose Medicaid or Medicare, or change health plans, call the auto insurer the same week. The option you qualified for in January may not be the option you qualify for in September, and a claim is a bad time to learn that the medical limit no longer applies.

FAQ

What happens if I don't choose a PIP medical option?

The unlimited PIP medical option is selected by default, and you pay the premium for that level.

Can anyone pick the $50,000 option or opt out completely?

No. The $50,000 option requires Medicaid for the named insured, plus qualifying coverage for the rest of the household. The opt-out requires Medicare Parts A and B for the named insured, plus qualifying coverage for household members.

If I opt out of PIP medical, do I lose wage-loss benefits too?

No. The official FAQ says wage loss, replacement services, and funeral and burial benefits remain in the policy.

Does a lower PIP limit automatically cut my whole auto premium by 35% or 45%?

No. Those figures were statewide average PIP medical reductions required after the 2020 law, by coverage level. Your price still depends on your circumstances and the company.

Next step

At your next renewal, review the six PIP medical options with a licensed local agent. Bring proof of any health, Medicare, or Medicaid coverage you plan to rely on, and don't sign a lower option until you're sure every person in the household qualifies.

Sources: Michigan.gov/AutoInsurance, choosing PIP medical coverage; Michigan.gov/AutoInsurance, frequently asked questions.