Michigan Department of Insurance and Financial Services

Quick Facts

Governor Gretchen Whitmer signed historic bipartisan auto no-fault insurance legislation to lower costs,

maintain the highest coverage options in the country, and strengthen consumer protections. These changes

took effect for policies issued or renewed after July 1, 2020.

Drivers can now choose a level of Personal Injury Protection (PIP) medical coverage that fits their needs and

budgets, and insurance companies are required to reduce the PIP medical portion of premiums based on the

coverage level chosen. Your overall premium will depend on your individual circumstances and the

coverages you select.

• Up to $50,000 in coverage for named insureds enrolled in Medicaid and with all other household

• 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.

the premium associated with that choice.

claims made against you if you are found liable for the serious injury or death of another person. Prior to July

e with PIP, you’ll make your BI limit choice on a form provided by your insurance agent or company. If you

don’t make a choice, you will receive the default coverage of $250,000 per person and $500,000 for any two

or more persons in one accident.

level before choosing a policy appropriate for your needs and budget.

How much money will I save when I make new policy choices?

The amount of your savings will depend on your situation and the choices you make. You should consider

reviewing your options, and the risks and benefits of those options, with your insurance agent or company

before making your PIP coverage choice.

• A statement from your non-Medicaid health insurer (if applicable), which identifies all members of

your household who are covered under that policy.

• A statement from your non-Medicaid health insurer (if applicable) which confirms that your policy

complies with the new law, meaning that it doesn’t exclude or limit coverage for auto accident

injuries and has an individual deductible of less than $6,000.

Should I choose to opt out of PIP medical coverage if I am on Medicare?

It depends on your situation. Opting out of PIP medical coverage means that you will save 100% of the PIP

medical coverage premium on your auto insurance bill. This can be a substantial savings, but you may want to

check your Medicare deductible and any Medicare copayment requirements you might have. It is also

important to know that there are certain medical services which Medicare will not cover, including such things

a private insurance company instead of directly by Medicare. A Medicare Advantage plan will count as

Medicare and may enable you to opt out of PIP medical coverage if you choose to do so.

I have a Medicare Supplement Plan (AKA Medigap), does this count as Medicare for the purposes of

opting out of PIP medical coverage?

Yes. A person with a Medicare Supplement Plan has original Medicare Parts A and B. The Medigap plan

helps pay some of the out-of-pocket cost not covered by original Medicare. As such if you have Medicare and

a Medicare Supplement plan, you may be able to opt out of PIP medical coverage if you choose to do so.

Can a single senior covered by Medicare with no resident relatives opt out of PIP medical coverage?

Yes. The new auto insurance law allows named insureds covered by Medicare to opt out of PIP medical

coverage as long as all other household members have other qualifying coverage. Since there are no other

If I’m on Medicare and have an adult child living in my home, can I opt out of PIP medical coverage?

You may opt out of PIP medical coverage provided that your adult child has either another Michigan auto

insurance policy or other qualifying health coverage which doesn’t exclude or limit coverage for auto accident

injuries and has a deductible of less than $6,000 per year. If the adult child is covered under another Michigan

auto insurance policy, the qualifying health coverage requirement is met, and you will be able to opt out of PIP

medical coverage if you choose to do so.

If I don’t opt out of PIP medical coverage, how will my PIP medical coverage choice and Medicare

coverage work together?

If you choose not to opt out of PIP medical coverage, your PIP medical coverage will serve as primary payer

up to the coverage limit you’ve selected. After that, your Medicare policy, Medicare Advantage, and any

out of PIP medical coverage. DIFS has confirmed with the U.S. Department of Defense that TRICARE and

CHAMPVA coverage constitutes QHC under Michigan’s new auto insurance law. Consumers may use

TRICARE or CHAMPVA to exclude or opt out of PIP medical coverage. Please see Bulletin 2020-47-INS

more information.

For more information about the new law, shopping for insurance, or how to file a complaint, visit

Michigan.gov/AutoInsurance or contact the Department of Insurance and Financial Services at 833-

ASK DIFS (275-3437).