Michigan No-Fault Insurance: PIP Medical Coverage Levels
Quick answer: Michigan is a no-fault state. Since July 1, 2020, drivers choose how much personal injury protection (PIP) medical coverage to buy. There are six levels: unlimited, up to $500,000, up to $250,000, up to $250,000 with exclusions, up to $50,000 (for Medicaid enrollees), and a Medicare opt-out.
If you don't pick one, you get unlimited coverage by default.
The six PIP medical options
Each limit is the most the insurer pays per person, per accident, for an injured person's medical expenses.
| Option | Who can choose it |
|---|---|
| Unlimited | Anyone. This is the default if you don't choose. |
| Up to $500,000 | Anyone |
| Up to $250,000 | Anyone |
| Up to $250,000 with PIP medical exclusions | A named insured with non-Medicare health coverage that covers auto accident injuries, and/or household members whose health insurance covers them |
| Up to $50,000 | A named insured enrolled in Medicaid, when household members have other auto, Medicaid, or qualifying health coverage |
| Opt out (Medicare) | A named insured with Medicare Parts A and B, when household members have qualifying coverage |
Why the level you pick matters after a crash
PIP is the coverage that pays your own medical bills after an accident in Michigan, whoever caused it. If your medical costs pass your limit, the rest has to come from other coverage or from a claim against the at-fault driver. Serious injuries, like a spinal cord injury or a long hospital stay, can pass $250,000 quickly.
Michigan uses a verbal threshold, so suing the other driver for pain and suffering requires an injury that meets the legal description.
Common questions
If I opt out with Medicare, who pays if I'm hurt?
According to DIFS, Medicare pays for covered services if you opted out, are injured, and have no other coverage. Where other coverage exists, Medicare pays second.
Did this change apply to my old policy?
The choices apply to policies issued or renewed after July 1, 2020. Any policy renewed since then falls under them.
Which other states are no-fault?
Twelve states and Puerto Rico. See the full no-fault states list.
What people run into
These questions come up again and again in online forums. Here's what the law says.
It's the opposite. If you don't choose a level on the state's selection form, your policy is issued with unlimited PIP medical coverage.
Michigan DIFS, PIP selection form
You'd have to rely on other health coverage, which may not cover all medical, rehabilitation, or attendant care costs. Insurers must offer excess attendant care coverage, which pays above your PIP limit for an added premium.
Michigan DIFS, PIP selection forms; Bulletin 2025-07-INS
Sources
This page summarizes Michigan's PIP options for general information. It is not legal or insurance advice. Your policy decides your coverage.