On July 1, 2020, big changes are coming to every Michigan driver’s auto insurance.

After July 1, auto insurance policies in Michigan will no longer automatically come with lifetime medical and rehabilitation coverage — called Personal Injury Protection (PIP) — for people injured in car crashes. Instead, Michigan motorists for the first time will decide how much PIP to buy with their auto insurance policies. If you choose to no longer purchase unlimited PIP coverage with your auto insurance policy and you are injured in a crash, your immediate and long-term medical and rehabilitation expenses are your responsibility to pay, either out of your pocket or through some other form of health insurance, which may or may not cover the care.

Under Michigan’s new law, drivers can keep the same level of unlimited medical care, choose a level of limited medical coverage, or in certain cases, opt out entirely from receiving auto injury coverage.

For most drivers, having PIP means driving protected. While everyone wants the lowest possible auto insurance rates, when you are behind the wheel, the physical and financial consequences of injuries from an auto accident are significant. Much like a seatbelt protects you from many physical injuries, personal injury protection coverage protects your health and your personal finances in serious car crashes.

What level of coverage is right for you?

If you are considering lowering your PIP coverage – consider this: brain injuries and other common occurrences in severe auto accidents require extensive emergency care and possibly years of rehabilitation therapy. Without PIP coverage, the cost of caring for an injury can lead families to skip out on important medical treatments, which can lead to even more pain and a lower quality of life.

Under the new law, drivers will be able to purchase the following amounts of coverage: 

      •  Opt-out ($0) – only available to drivers with Medicare 

      •  $50,000 – available to those with Medicaid 

      •  $250,000 – available to all drivers 

      •  $500,000 – available to all drivers 

      •  Unlimited – available to all drivers 

By purchasing PIP coverage, accident survivors can receive the treatments they need, with most or all of their medical expenses covered. Drive protected by choosing to add PIP coverage to your auto insurance policy.  Contact your insurance agent today and ask how you can drive protected under Michigan’s new auto insurance law.