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On July 2, 2020, many changes to the existing no-fault auto insurance law will take effect, including giving Michigan drivers a choice in their level of PIP coverage. Under the new plan, drivers will be able to choose from up to six options for Personal Injury Protection coverage.
A PIP medical opt-out is available for named insureds who have Medicare Parts A and B and all other household members have another Michigan auto insurance policy or other qualifying health care coverage. You make your PIP medical coverage limit choice on a form provided to you by your insurance agent or company.
It is important to know that if you choose a lower level of PIP medical coverage and you don't have health insurance, you may be personally responsible for your medical costs that exceed your PIP medical coverage limit if you are injured in a crash.
PIP insurance in Michigan is part of a person's auto No-Fault insurance coverage that pays for a person's auto accident-related medical expenses and lost wages after he or she has been injured in a car accident.
Medicare Recipients and the Auto No-Fault Opt-Out Option Seniors can now opt-out of no-fault PIP expense benefits if they: are covered under both Parts A and B of Medicare; and. their spouse and any resident relative has Medicare ?qualified health coverage? or has coverage under a separate no-fault policy.